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Perfect Double Top to Complete Forming on EUR/AUD @ H4?

March 8, 2020 (Last updated on March 9, 2020) by

EUR/AUD looks like it is now taking a form of a nearly perfect double top pattern on its 4-hour chart. With an uptrend lasting since February 19 through March 2, the currency pair has formed a successful second peak on March 6. It will now either complete forming the double top pattern by going down at least to the neckline or invalidate the pattern by breaking above the previous top.

The chart below shows the neckline and the two tops marked with the yellow lines. The cyan line is where my entry order will be — it is positioned at 10% of the pattern’s height below the neckline. I will place my take-profit at where the green line is. It is situated at 100% of the pattern’s height below the neckline. I will set my stop-loss to the high of the breakout candle or to the high of the preceding one if the breakout candle is trading mostly below the neckline. I won’t trade bullish breakouts from this trend reversal pattern. You can click on the chart to see its full-size version:

EUR/AUD - Double Top Pattern on 4-Hour Chart as of 2020-03-08

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

Update 2020-03-09: The oil war between Russian and Saudi Arabia resulted in huge weekend gaps across currency pairs. EUR/AUD was no exception — the double top pattern had been invalidated and I have cancelled my trade set-up:

EUR/AUD - Double Top Pattern on 4-Hour Chart as of 2020-03-09 - Post-Cancellation Screenshot

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

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