When it comes to triangles I can say it’s one of my best manual trading patterns, despite there is no evidence that show this patterns actually works but I really like to bet on this shapes.
CADCHF is trading inside a triangle for very long time, the triangle is very clear if you look at weekly chart:
As you know to trade a triangle pattern we either bet on the breakout or price rejection from its lower/upper boundaries currently, it’s the
The previous week candle is a nice rejection candle and it formed after price touched the lower boundary of the triangle, it shows there are some players who are willing to keep the price inside this triangle or its a trap and we might have a breakout next week.
I’m going to take the risk and bet on the long side, for entry and setting SL/TP I will use the daily chart:
You can decrease the size of your SL and target a risk:reward ratio of 1:2 or even more.