Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

Ascending Triangle on GBP/JPY@ H4 Chart

November 30, 2014 (Last updated on December 5, 2014) by

This week will be another one with a rather strong trading idea at my disposal. The GBP/JPY ascending triangle may look slim, but it is a valid pattern, which was born following an uptrend. It has enough points of contact both with the upper horizontal border and the lower inclined one. The only problem I see is the fact that the formation is only one week long.

The yellow lines mark the triangle itself. The cyan line shows my breakout entry level placed at 10% of the triangle’s height above the border. The green line, located at 100% of the height above the border, will serve me as a take-profit level. I will set the stop-loss to the low of the breakout bar. The risk-to-reward ratio here might come out poor, but I still expect it to be at least 1:1.

GBP/JPY - Ascending Triangle on H4 Chart as of 2014-11-30

The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/JPY pattern. It can be traded using my free Chart Pattern Helper EA.

Update 2014-12-02 13:12 GMT: Long position entered at 186.462 at 6:57 GMT today. The breakout looks OK as the pull-back has already ended, in my opinion. My stop-loss is set to 185.653, and my take-profit level is at 188.675. Please have a look at the post entry chart:

GBP/JPY - Ascending Triangle - Post Entry Screenshot as of 2014-12-02

Update 2014-12-05 10:22 GMT: Take-profit hit in a GBP/JPY rally at about 6:58 GMT today.

GBP/JPY - Ascending Triangle - Post Exit Screenshot as of 2014-12-05


If you have any questions or comments regarding this ascending triangle on GBP/JPY chart, please feel free to submit them via the form below.

7 Responses to “Ascending Triangle on GBP/JPY@ H4 Chart”

  1. Jacek

    Have you entered? My chart says daily high at 186,92.

    Reply

    Andriy Moraru Reply:

    Yeah, will update the post now.

    Reply

  2. Jacek

    What RR ratio was eventually?

    Reply

    Andriy Moraru Reply:

    2.73

    Reply

  3. Jacek

    Good enough:) congratulations

    Reply

    Andriy Moraru Reply:

    Thanks! Do you follow any of these trades? Or do you have your own system?

    Reply

  4. Jacek

    I have my own system but very silmilar and like your approach. i like to play breakouts and some patterns. I don’t like indicators and complex systems.
    Several times I followed your trades but it was an entry in my system as well. What I do different is exit. I like to trail my stop when the possible move is quite big.
    Anyway I have your website in my RSS feed and keep reading. At the moment I am not trading. I want to start again from January.
    BTW. notifications via e-mail doesn’t work with my account. I have to keep the tab open to read your replies.
    Keep up the good job on this blog! :)

    Reply

Leave a Reply

required
required (will not be published)
optional