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.
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.
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