In today’s trading sniper I would like to show you the power of triangle patterns and I will do it using less frequently covered currency pairs. Triangles, especially ascending and descending ones are super powerful formations, which can be a reliable and trustworthy friend of every technical trader.
The first instrument is the , where we have a beautiful ascending triangle pattern. This is promoting a breakout to the upside and it is happening as we speak. Since today, the price couldn’t break the 0.693 resistance. The first day of September brings us an attack and in consequence a breakout which leads to a mid-term buy signal.
An example of how effective an ascending triangle can be is seen on the chart, where the ascending triangle has been present since June. Last week, the price finally broke the 76.6 resistance, which brought us a legitimate buy signal. The sentiment here is definitely positive.
Triangles can work both ways, the two previous examples were of ascending triangles with a horizontal resistance and now I will show you the descending version of this pattern – with horizontal support. It can be spotted on the , where the price is going lower since the end of March. A recent breakout of the lower line of the triangle gives us a proper sell signal. The sentiment here is negative.
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