A pennant has formed on the
On the present chart, yellow lines show the pennant itself. The cyan line is located 10% of the flagpole’s height above the pennant and suggests an entry point for bulls if prices will indeed break to the upside. The green line is at the flagpole’s length above the pattern and offers the target for taking profit.
It is important to be cautious in trading, remembering that patterns do not predict performance with 100% certainty as was demonstrated in the previous case of the similar pattern, when an upside breakout was not followed through with a rally to the profit objective.
You can click on the image to see a
The chart was built using the ChannelPattern script. You can download a MetaTrader 4 chart template for this gold pattern. You can also trade it using the free Chart Pattern Helper EA.
Update 2018-10-15: The breakout trade has triggered at 6:07 GMT today with the entry price of 1223.38,
Update 2018-10-18: The breakout turned to consolidation and hit the trade’s
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