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Triple Top on AUD/NZD Daily Chart

November 23, 2014 (Last updated on December 17, 2014) by

A notable triple top pattern appears on a daily chart of the AUD/NZD currency pair. You can see it at the end of the long-term uptrend lasting since the beginning of this year. Although the pattern looks rather rough, I believe that it can serve as a valid entry trigger for a bearish trade.

The pattern is marked with three dark blue circles on the image below. A horizontal yellow line shows the lower border (neckline). The pattern’s entry level is positioned after a buffer range below the border. Entry level is based on the height the triple top formation. It is also not far from the multi-year low, which has started the ongoing bullish trend.

AUD/NZD - Triple Top Pattern on Daily Chart as of 2014-11-23

The channel was detected using the Channel Pattern Detector indicator. The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/NZD pattern. It can be traded using my free Chart Pattern Helper EA.

Update 2014-11-27: Entered a short position at 1.08771 yesterday. The stop-loss order is currently set to 1.09869. My take-profit level is located at 1.05363. The breakout looks to be significant with the pull-back bouncing right off the entry line:

AUD/NZD - Triple Top on Daily Chart - Post Entry Screenshot

Update 2014-12-17: The trade has hit its take-profit level of 1.05363 yesterday. It could have hit it last Thursday, but the drop stopped mere 8 fractional pips above my TP. This time, all went well and AUD/NZD bottomed 16 full pips below my target. You can see it on the chart below:

AUD/NZD - Triple Top on Daily Chart - Post Exit Screenshot

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

One Response to “Triple Top on AUD/NZD Daily Chart”

  1. Jacek

    Wow it looks good.

    Reply

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