EUR/USD Trade Set-Up Aug 25
The pair has converged into a triangle like pattern after strong moves last Friday. In the triangle I have not actually included the extremes of that day in the triangle, although they do actually connect quite nicely. These extremes have been left out as they were due to a news event which will not repeat in the next couple days. Therefore, we will use the swings after that to draw the triangle and extract a profit target.
A break through the bottom trend line (confirmed by a drop below horizontal line) will create a profit target at 1.4210. This target will increase very slightly over time.
A push above the upper trend line gives early warning of a rise with a target of 1.4400 (currently). This will decrease slightly over time.
Update: Mini Lesson – I just happened to look at my charts and notice the pair nudged below the trend line and then pulled back into it. The most consistent signals will come from trading the pair while the European or US sessions are active. Trades can be entered when Tokyo and Syndey are open as they do affect the market obviously, but I will often wait till the European sessions begin (for this pair). A breakout means nothing if there is no volume behind it, so trade pairs when they have volume unless your strategy is specifically designed for trading at “thin” times.
Want to learn more about chart patterns? Or find out more about what I spoke about above? Check out my eBook available here: http://vantagepointtrading.com/trading-courses along with other trading courses.

Source: Forexyard, EUR/USD 30 Min Chart
~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!
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