Technical Chart Analysis – EUR/USD (2h Timeframe)
Pattern: Symmetrical Triangle
A symmetrical triangle is a consolidation pattern marked by converging trendlines (lower highs and higher lows), indicating a battle between buyers and sellers. This pattern often leads to a breakout once price compresses enough and either side takes control. In this case, the chart suggests a bullish breakout setup.
Key Components of the Trade
1. Entry Point (Long Position)
Level: 1.1335 – 1.1340
Reasoning:
This is just above the upper trendline of the symmetrical triangle.
A breakout from this level signals a potential bullish momentum.
Entry at this level gives a low-risk opportunity to catch the trend early.
The breakout seems confirmed by bullish price action and the long bullish wick at the triangle base.
2. Target Point (Take Profit)
Level: 1.1486 – 1.1500
Reasoning:
The target is derived using the measured move method, which involves taking the height of the triangle’s base and projecting it upward from the breakout point.
It also aligns with a previous price resistance zone, making it a confluence area.
Price previously reversed around this zone, increasing its reliability as a take-profit level.
3. Stop Loss
Level: 1.1320 – 1.1325
Reasoning:
Positioned just below the lower trendline of the triangle and the most recent swing low.
Allows for some price fluctuation while still protecting capital if the breakout turns out to be false.
Keeps the risk minimal without crowding the price action too tightly.
Pattern: Symmetrical Triangle
A symmetrical triangle is a consolidation pattern marked by converging trendlines (lower highs and higher lows), indicating a battle between buyers and sellers. This pattern often leads to a breakout once price compresses enough and either side takes control. In this case, the chart suggests a bullish breakout setup.
Key Components of the Trade
1. Entry Point (Long Position)
Level: 1.1335 – 1.1340
Reasoning:
This is just above the upper trendline of the symmetrical triangle.
A breakout from this level signals a potential bullish momentum.
Entry at this level gives a low-risk opportunity to catch the trend early.
The breakout seems confirmed by bullish price action and the long bullish wick at the triangle base.
2. Target Point (Take Profit)
Level: 1.1486 – 1.1500
Reasoning:
The target is derived using the measured move method, which involves taking the height of the triangle’s base and projecting it upward from the breakout point.
It also aligns with a previous price resistance zone, making it a confluence area.
Price previously reversed around this zone, increasing its reliability as a take-profit level.
3. Stop Loss
Level: 1.1320 – 1.1325
Reasoning:
Positioned just below the lower trendline of the triangle and the most recent swing low.
Allows for some price fluctuation while still protecting capital if the breakout turns out to be false.
Keeps the risk minimal without crowding the price action too tightly.
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.
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.