Forex Blog

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

Archives

Euro in Symmetrical Triangle Consolidation vs. New Zealand Dollar

May 1, 2016 (Last updated on June 1, 2016) by

A symmetrical triangle has formed on a weekly chart of the EUR/NZD currency pair. It is not a perfect example of such pattern because the upper slope is a bit steeper than the lower one. Nevertheless, it can serve as a good breakout entry setup considering the fact that it acts as a consolidation funnel following a rather strong uptrend wave. It is a long-term pattern — the base of the triangle is in September 2015, so do not expect it to to trigger overnight.

The borders of the triangle are marked with the yellow lines on the chart image below. The cyan line is my breakout entry point located at 10% of the triangle’s base’s height from the upper border. The green line will be my take-profit level, placed at 100% of the same height from the upper border. I will set my stop-loss to the low of the breakout bar or to the low of the preceding bar should the breakout one be too outside of the pattern. I will ignore a bearish breakout from this symmetrical triangle as it is a continuation pattern that follows a rising trend. You can click on the image to see a full-sized screenshot:

EUR/NZD - Symmetrical Triangle Pattern on Weekly Chart as of 2016-05-01

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this EUR/NZD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2016-05-10: EUR/NZD broke to the upside from this triangle pattern today at 00:08 GMT. Entry triggered at 1.68588 with stop-loss at 1.63400 and take-profit at 1.84923 (but it will be going down with the triangle’s border). The price has retreated somewhat since the breakout:

EUR/NZD - Symmetrical Triangle Pattern on Daily Chart as of 2016-05-10 - Post-Entry Screenshot

Update 2016-06-01: EUR/NZD dropped down to my stop-loss level today near midnight GMT:

EUR/NZD - Symmetrical Triangle Pattern on Daily Chart as of 2016-06-01 - Post-Exit Screenshot

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

Leave a Reply

required
required (will not be published)
optional