February 28, 2021 (Last updated on March 3, 2021) by

Last week, I posted a bullish flag pattern on the long-term weekly timeframe of EUR/USD. Even though today’s ascending channel on the daily chart seems to contradict the previous formation, in fact, it serves to reinforce it as the current trade setup (if triggered) will play out entirely inside the flag’s consolidation area.

The image below shows the channel with two rising yellow lines. My potential entry level is at the cyan line, which is positioned at 10% of the channel’s width below the lower border. I will set my take-profit to where the green line is (at 100% of the channel’s width below the lower border). The stop-loss level isn’t fixed to any line — it will be set to the high of the breakout candle. However, if the breakout candle trades mostly outside of the channel, the stop-loss will be set to the high of the preceding candle. I will ignore bullish breakouts from a continuation pattern that follows a dowtrend.

EUR/USD - Ascending Channel Pattern on Daily Chart as of 2021-02-28

I built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this EUR/USD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2021-03-01 9:31 GMT: The price broke through the channel’s border and triggered a sell trade entry just an hour ago. The open price is 1.20561 with stop-loss at 1.21007 and take-profit at 1.19057 (subject to changes).

EUR/USD - Ascending Channel Pattern on Daily Chart as of 2021-03-01 - Post-Entry Screenshot

Update 2021-03-03 10:30 GMT: Unfortunately, a powerful breakout was followed by an equally powerful pullback, triggering the position’s stop-loss just some 3 hours ago:

EUR/USD - Ascending Channel Pattern on Daily Chart as of 2021-03-03 - Post-Exit Screenshot

If you have any questions or comments regarding this ascending channel on the EUR/USD chart, please feel free to submit them via the form below.

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This article was originally published by Earnforex.com/blog.Read the original article here.