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Classic Ascending Channel on Daily Cable Chart

April 21, 2013 (Last updated on May 21, 2013) by

A rather promising ascending channel has formed on GBP/USD D1 chart. More than a month long, it fits the parallel border lines pretty accurately, with enough touches both on the upper and the lower one. The pattern appears at the end of a sharp decline, confirming its continuation nature.

The chart screenshot shows the channel borders in yellow, potential breakout entry points in cyan and the take-profit lines in green. I will trade only on a bearish breakout here and will set my stop-loss to the High of the breakout bar. By the way, the parallel channels (entry and TP) on the screenshot below have been plotted using the ChannelPattern script, and I will use Chart Pattern Helper EA to trade this pattern.

GBP/USD - Ascending Channel on D1 Chart as of  2013-04-21

You can download my MetaTrader 4 chart template for this GBP/USD pattern.

Update 2013-05-10 16:50 GMT: After charting another complete bullish wave inside the channel, the price has finally triggered my entry point at 1.53174 just about one and a half hours ago. Stop-loss was set to 1.54580 and take-profit was set to 1.50295, but it will rise every day with the upward slope of the channel line. The position currently looks quite problematic, as the triggering price action can barely be called a breakout. I would say that it has a high probability of turning to a fake-out.

Update 2013-05-21 19:41 GMT: Here comes my first successful trade this year. Position closed at TP at 1.51203 more than three hours ago.

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

2 Responses to “Classic Ascending Channel on Daily Cable Chart”

  1. Jacek

    Congratulations!

    Reply

    admin Reply:

    Thanks! It could run lower but I am happy with my booked gain.

    Reply

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