On its daily chart, the USD/CAD Forex pair is trading inside a rough ascending channel since December 11, 2012. The upper side of the channel is not fully defined (only two price spikes touching it), while the lower border has been broken on February 7. Although there is no significant downtrend prior to this channel, a bearish breakout should be expected as the pattern usually signals a continuation of the previous trend.
The borders are showing with the yellow dashed lines. They are encased in the cyan lines, which are marking entry levels for the pending stop orders and are positioned at 10% of channel’s height above and below the borders.
You can download my MetaTrader 4 chart template for this USD/CAD pattern.
By the way, this channel will also be the first pattern that I will trade using the expert advisor in my live account. It is an experimental EA that was created to trade such
Update 2013-02-26 15:32 GMT: The rally broke through the upper border of the channel and triggered the long position entry at 1.0285 exactly 15 minutes ago.
Update 2013-02-28 7:50 GMT: Hit
If you have any questions or comments regarding this ascending channel on USD/CAD chart, please feel free to post them via the form below.
Hi
Am impressed and thankful for the vast amount of resources you make available here. A question regarding your channel lines: How do you draw the second set (at 10%) and third set (at 100%) with accuracy?
Thanks!
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admin Reply:
February 19th, 2013 at 3:41 pm
I use calculator to calculate the values and then set them via channel properties – I do not drag those lines with mouse.
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Hi, I would not spot this setup but I believe that is as good as always:) Hopefully it will break upside because I am already long on this pair:D
BTW. Is there a downward channel forming on EURJPY at the moment?
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admin Reply:
February 21st, 2013 at 12:35 pm
It can go up inside the the channel for quite a long time before breaking to the downside.
What timeframe on EUR/JPY?
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Daily chart. It looks like downward channel or flag-a-like pattern. I trade mostly breakouts so I am not good at spotting chart patterns.
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admin Reply:
February 22nd, 2013 at 12:47 pm
Yes, there is a sort of descending channel, which is more visible on H4. Pretty rough though. Will post about it on Sunday if it holds.
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