Forex Blog

I have last traded an ascending channel pattern back in June of 2017 and it was a major success. The formation on the AUD/NZD daily chart looks solid enough to warrant a new trade setup.

The yellow lines on the chart screenshot below mark the channel itself. The cyan line shows the position of my entry order. It is placed at 10% of the channel’s width below the bottom border. The green line will serve as my take-profit level; it is located below the channel at its full width. The stop-loss should be placed at the high of the breakout candle. If the breakout candle trades mainly outside the channel, the preceding candle should be used. A bullish breakout from an ascending channel should be ignored as it is a trend continuation pattern, which appears inside a downtrend. You can see a full-size screenshot if you click on the image:

I detected this channel using the Channel Pattern Detector indicator and built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/NZD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2018-10-10: I have completely forgotten to post an update on this flash trade disaster — it triggered at 1:00 on September 26 and hit stop-loss the same day at 18:06 GMT. As you can see, the exchange rate had barely scratched the entry level (1.08624) and then proceeded up to the exit point at 1.09278:

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