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Three Chart Patterns for the Year’s End

Christmas and New Year holidays should be a quiet time in the Forex market, but these three chart patterns below will help you keep yourself busy during the period and at the start of 2017.

All patterns are drawn using the same principles: the borders are shown with the yellow lines. The cyan lines serve as the entry points (they are detached from the borders using a 10% buffer). The green lines are take-profit targets. In all three cases, stop-loss is to be set to the opposite end of the breakout candlestick.

The bullish pennant on the daily chart of USD/JPY tells a tale of a short-term consolidation following a strong upswing in the rate. A bullish breakout is a valid signal for buying. A bearish breakout or sideways trading will invalidate the formation:

USD/JPY - Bullish Pennant Pattern on Daily Chart as of 2016-12-25

This long-term ascending channel is a correction wave inside the long-term downtrend that had started in January 2016. Downside breakouts from ascending channels signal bearish trend continuation:

USD/CAD - Ascending Channel Pattern on Weekly Chart as of 2016-12-25

The British pound is consolidating against the Aussie in a sort of an ascending triangle since the end of November. Despite its major fundamental weakness, the pound will demonstrate a notable upswing should the rate breakout through the triangle’s upper border:

GBP/AUD - Ascending Triangle Pattern on Four-Hour Chart as of 2016-12-25

I detected the ascending channel using the Channel Pattern Detector indicator.

I have built all these charts with the help of the ChannelPattern script.

You can download the chart templates for MetaTrader 4 platform: USD/JPY, USD/CAD, GBP/AUD.

You can trade these setups using my free Chart Pattern Helper EA.

If you have any questions or comments regarding the three patterns analyzed in this post, please feel free to reply using the commentary form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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