How does the symmetrical triangle help our trading?
Today we focus on the USDJPY. If we look at the monthly time frame you can see that we have had the symmetrical triangle formation. We have ever so slightly broken out of the symmetrical triangle. This is interesting as it is very close to the end of the month and we are starting to see Pro-Trading System firing a long signal. We haven’t had this confirmed yet, so we need to have a look and see what’s happening in the smaller time frames.
Looking at the weekly time frame, we can see that we currently do have a green Pro-Trading System signal and we have momentum to the upside. This could currently be a potential pull back on the smaller time frames which might mean we’ll see a further move to the upside.
The Daily time frame shows us making clear higher highs and higher lows and we can see a pullback.
What do we do next?
Next, we wait for the next green Pro-Trading System candle and that will be our signal to go long. We must however, stay above the 10972 area because that is the previous low. The symmetrical triangle on the monthly time frame will now act as support underneath price as well as the moving averages. If we see green Pro-Trading System that will be our signal to go long and we will then be trading in the direction of the weekly as well as the monthly time frame. The next potential move in this market could last a couple of weeks!
We are currently in a pullback on the daily timeframe. Wait for Green PTS for continuation to the upside.