Following on from my earlier post today I have found another short term symmetrical triangle setup – this time on the EURAUD cross.
As you can see in this chart the price has been trending consistently over the period shown. The thing to remember about the main triangle patterns is that they have no disposition either to the long or the short side. This means that the onus is on the trader to wait for the breakout and then take the trade in the direction of the break.
Despite this I am sure that many traders will look to the direction of the wider trend and then only trade if the break happens in this direction. In this case we are looking at a 10 min chart so to get a better idea of the wider trend you would probably look at the 60 min and daily charts to make your decision if this is your thought process.
You can see a lot of examples of this type of setup previously in the blog which detail some of the standard approaches to entry, exit and risk management for this type of trade.
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All the best,