The AUD:JPY triangle set up I posted yesterday is close to breaking to the downside.
I thought it may be useful to post some brief thoughts on an approach to entry and exit levels for readers interested in following this set up.
- The entry set up applies a filter and waits for price to clear the triangle support ( in this case by 25-30 pips) before selling
- The initial stop is just behind the triangle resistance.
- If price makes 61.8% of the distance from the break point to the profit objective, a one candle trailing stop is put in place. This is initially placed just behind the high of the candle reaching the trigger level. Once a candle makes a low below the 61.8% level the stop is left at that level
- The profit target projects the height of the triangle from the break out point. A small price filter is applied to this projection