GBP:AUD – Day traders set up

As we head into the start of the European session tonight, I though readers may be interested in this example of a triangle set up in the GBP:AUD 5 minute chart.

GBP:AUD CFD – 5 minute. Source: CMC Tracker

As I’m writing this price is just nudging through the resistance. A break through a triangle is often  used as a set up for entering new trends in the direction of the break out. One approach is to wait for price to get clear of the resistance before entering to cut down the risk of false starts. Stop entry orders can be used for this.

The hourly chart below makes this set up interesting. The triangle comes at what could be the end of a significant downtrend. The last 2 trend troughs were pretty flat (blue line) and the stochastic oscillator is trending up from the oversold zone confirming potential for a buy strategy in the 5 minute chart.

GBP:AUD – 1 Hour.

About Ric Spooner

Over 30 years market experience - professional trader, broker, director
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