Overview of the Chart:
The chart represents the EUR/USD (Euro to U.S. Dollar) pair on a 1-hour timeframe, showcasing a bullish ascending triangle breakout. The pattern indicates an upward continuation in the trend after a period of consolidation. This analysis will break down the key elements of the chart, the technical structure, and the potential trading strategy.
1. Market Structure & Key Zones
A. Market Curve Area (Early Trend Development)
The price started with a strong bullish trend leading up to the formation of the triangle.
The curved trendline suggests a gradual increase in buying pressure, indicating that the market was preparing for a larger breakout.
B. Resistance and Support Levels
Resistance Level (Red Arrow & Blue Box):
This level acted as a price ceiling where sellers previously dominated.
The market attempted multiple times to break this resistance before successfully breaching it.
Support Level (Green Arrow & Yellow Zone):
The price consistently found buyers at this level, reinforcing a higher low structure.
The rising support line within the triangle indicated strong accumulation by buyers.
2. Chart Pattern: Ascending Triangle Formation
The price action formed an ascending triangle, which is a well-known bullish continuation pattern.
The higher lows (trendline support) indicated buyers were gaining control, gradually pushing the price toward the resistance.
Eventually, the resistance was broken with strong bullish momentum, confirming a valid breakout.
3. Breakout Confirmation & Retest
The breakout above the resistance level came with high volume, indicating strong market participation.
After the breakout, a minor pullback (retest) occurred, confirming previous resistance as new support.
The price surged upward after the retest, validating the bullish trade setup.
4. Trade Setup & Risk Management
A. Entry Strategy
A trader would enter a buy (long) position after confirming the breakout.
Entry Trigger:
Either at breakout (high-risk, early entry)
Or after a successful retest (safer entry)
B. Stop Loss Placement
A stop loss is placed below the previous support level at 1.07276, ensuring risk is limited in case of a false breakout.
C. Target Projection
The target price is measured using the height of the triangle added to the breakout level.
Based on this calculation, the projected target is around 1.12838.
5. Conclusion & Trading Plan
The EUR/USD pair has executed a clean ascending triangle breakout, signaling further bullish movement.
The trading plan suggests:
✅ Entry: Buy after breakout confirmation or retest.
✅ Stop Loss: Placed below 1.07276 for risk management.
✅ Take Profit: Targeting 1.12838, based on the pattern’s height projection.
This setup presents a high-probability long opportunity in a trending market, with proper risk management to protect against potential reversals.
The chart represents the EUR/USD (Euro to U.S. Dollar) pair on a 1-hour timeframe, showcasing a bullish ascending triangle breakout. The pattern indicates an upward continuation in the trend after a period of consolidation. This analysis will break down the key elements of the chart, the technical structure, and the potential trading strategy.
1. Market Structure & Key Zones
A. Market Curve Area (Early Trend Development)
The price started with a strong bullish trend leading up to the formation of the triangle.
The curved trendline suggests a gradual increase in buying pressure, indicating that the market was preparing for a larger breakout.
B. Resistance and Support Levels
Resistance Level (Red Arrow & Blue Box):
This level acted as a price ceiling where sellers previously dominated.
The market attempted multiple times to break this resistance before successfully breaching it.
Support Level (Green Arrow & Yellow Zone):
The price consistently found buyers at this level, reinforcing a higher low structure.
The rising support line within the triangle indicated strong accumulation by buyers.
2. Chart Pattern: Ascending Triangle Formation
The price action formed an ascending triangle, which is a well-known bullish continuation pattern.
The higher lows (trendline support) indicated buyers were gaining control, gradually pushing the price toward the resistance.
Eventually, the resistance was broken with strong bullish momentum, confirming a valid breakout.
3. Breakout Confirmation & Retest
The breakout above the resistance level came with high volume, indicating strong market participation.
After the breakout, a minor pullback (retest) occurred, confirming previous resistance as new support.
The price surged upward after the retest, validating the bullish trade setup.
4. Trade Setup & Risk Management
A. Entry Strategy
A trader would enter a buy (long) position after confirming the breakout.
Entry Trigger:
Either at breakout (high-risk, early entry)
Or after a successful retest (safer entry)
B. Stop Loss Placement
A stop loss is placed below the previous support level at 1.07276, ensuring risk is limited in case of a false breakout.
C. Target Projection
The target price is measured using the height of the triangle added to the breakout level.
Based on this calculation, the projected target is around 1.12838.
5. Conclusion & Trading Plan
The EUR/USD pair has executed a clean ascending triangle breakout, signaling further bullish movement.
The trading plan suggests:
✅ Entry: Buy after breakout confirmation or retest.
✅ Stop Loss: Placed below 1.07276 for risk management.
✅ Take Profit: Targeting 1.12838, based on the pattern’s height projection.
This setup presents a high-probability long opportunity in a trending market, with proper risk management to protect against potential reversals.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.