Inside technicals and chart patterns by 
Sometimes a set up just wanders and this in not unexpected when it comes to a congestion pattern like a triangle on a longer intraday timeframe…
The daily trend is still up but the market cycle is transitioning to a more sideways angle. The shorter term 15 and 30 minute chart is also congesting. The shorter timeframes do carry less risk. Here’s a look at the 15 minute chart:
Since triangle patterns are “self limiting” it’s inevitable that this pattern will pierce either support or resistance during the Asian session. The current reading on the MACD Histogram is slightly negative.
Hello Raghee,
Just wanted to know what moving average the aqua line on your chart is and what you use it for? Thanks in advance for your answer. I enjoy you posts and your books. I look forward to your new book in the fall.
David K.
Hi Raghee - I’m just starting to read your books, so forgive me if this gets covered somewhere. But I have a question about the 15 min EUR chart you have posted. I was following the same chart yesterday (Monday, June 22). I have my rising trendline starting earlier, coming up a sharper angle, so that 6th or 7th candle from the right was my “pierce” candle that triggered a short somewhere around 4 or 5 PM. Then, of course, price action continued to stay relatively flat throughout the night.
I guess my question is: do you ever find yourself re-drawing triangles. Does your analysis ever change when what you thought was a pierce of a trend actually becomes a lower trendline?
In my case, I booked a small profit, so I suppose something was right. But I feel like I got lucky, given the sideways price action, and then later, at 2 AM, the start of the massive jump up to 1.4100.
Thanks!
David, it’s a 10 period SMA. I actually don’t use it…it’s part of a trend following plug for MT4 that I am testing. Thanks for your email.