Since mid-March, the Australian dollar had been experiencing a strong uptrend against its US counterpart, which stopped only after the first week of June. Then, the currency pair entered a consolidation phase that took form of an ascending triangle — a continuation chart pattern — on the daily timeframe.
The screenshot below shows the triangle’s borders with the yellow lines. The potential entry is shown with the cyan line. It is located at 10% of the triangle’s base width above the upper border. I will set my take-profit level to the green line, which is located at 100% of the triangle’s width above the upper border. I will set my stop-loss to the lowest point of the triangle (71.591). Bearish breakouts are to be ignored for this trend-continuation pattern. You can click on the chart below to see a full-size screenshot of the triangle:
The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/JPY pattern. It can be traded using my free Chart Pattern Helper EA.
Update 2020-08-28: The long entry triggered at 16:16 GMT yesterday. The entry price was 77.388 with stop-loss at 71.591 and take-profit at 82.131:
Update 2021-02-16: It took the trade half a year to reach it take-profit after a major pull-back from the initial breakout, but it has finally closed today at 00:25 GMT at 82.131.
If you have any questions or comments regarding this ascending triangle on AUD/JPY chart, please feel free to submit them via the form below.
