Momentum Trading 101: AUD/USD Breaks Through Ascending Triangle

The 240-minute chart of the AUD/USD has broken through the resistance of an Ascending Triangle. Ascending Triangles are made up of a more horizontal resistance level and a the support of an uptrend line. They are also best traded within the context of a sideways market phase such as the one seen here as prices were moving sideways within the pattern with a flat 34EMA Wave.

5-4-2011 9-55-20 AM.jpg

AUD/USD 240-minute chart with an Ascending Trianglechart pattern alert courtesy of Autochartist

The “momentum” set up is one that capitalizes on a more neutral market opinion and therefore it’s the MOMENTUM that we’re waiting on. It reveals itself by moving higher through resistance or lower through support – but the key is to wait for these moves from a non-trending market phase.

Additionally, I like to confirm these moves with an MACD Histogram. On the MT4 platform it is called the Moving Average of Oscillator.

5-4-2011 10-10-54 AM.jpg

MT4 charts with Autochartist chart pattern plug-in and Moving Average of Oscillator indicator.

  • Forex

    The statistics you provided on your post is very useful for me.. Trading requires lot of analysis and your post is a great help in such case..