Her eon the US Dollar Index I'm looking at the formation of a potential ascending triangle pattern. This is my favorite breakout pattern (with the high/low & tight flag comin in second) to trade because of the nature of how it forms & the opportunities that it often offers to get in aggressively with low risk.
The nature of the pattern consists of price putting in equal highs while printing progressively higher lows which shows a sign of selling weakness in comparison to buying strength. In this particular situation for an aggressive buy we were looking for a hold at the previous retracement low. Unfortunately, we didn't get it (partially due to a couple out of the blue news releases that pushed the markets this morning), but the technicals are the technicals so we have to obey the rules.
Anyway, this is still a relevant trading opportunity that offers a good amount of room to the upside & I'll be continuing to key an eye on it as the week goes on.
As always if you have any questions or comments please leave them below as I do read through each and every one of them.
Akil
The nature of the pattern consists of price putting in equal highs while printing progressively higher lows which shows a sign of selling weakness in comparison to buying strength. In this particular situation for an aggressive buy we were looking for a hold at the previous retracement low. Unfortunately, we didn't get it (partially due to a couple out of the blue news releases that pushed the markets this morning), but the technicals are the technicals so we have to obey the rules.
Anyway, this is still a relevant trading opportunity that offers a good amount of room to the upside & I'll be continuing to key an eye on it as the week goes on.
As always if you have any questions or comments please leave them below as I do read through each and every one of them.
Akil
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