Hi again everyone,
it’s been something of a morning of intra-day patterns so I figured I would just keep posting them as I find them. In this case you can see the fast moving AUDUSD trading in something of a distributive phase and now finding itself on the cusp of being in a symmetrical triangle:
The key thing that the trader first needs to look for here is for a peak to be formed at these levels – otherwise we don’t have a confirmed pattern because we need 2 peaks and 2 troughs for that to occur.
If that happens then the trader will be waiting for a breakout and trade in that direction – with this type of pattern a break to the long or the short side is acceptable. In terms of stop placement there isn’t a particularly clear level for you to look at though depending on how the pattern forms up, something around the 1.0910 may be worth a look.
All the best,