Conclusion for today's analysis: Price action on an eventual breakout should move an equivalent distance of width indicated as a minimum expectation
Price action for the DXY (US dollar currency index) is provided on a Daily timeframe with coverage of well over 6 months of price action. The chart patterns in consideration are an ascending triangle and also a rectangle top formation. The former is ideally bullish, while the latter is ideally bearish. It is important to keep in mind that these are the ideal expectations for the patterns mentioned but they can also appear in a continuation position on a chart.
Hence, trend can proceed even with the appearance of a rectangle top formation and a bullish breakout occur. Oppositely, a bearish breakout can occur from an ascending triangle and the non-confirmation of the pattern itself can result in severe bearish consequences or move.
In either case, the width of the pattern is marked on the chart and should be used for projection on eventual confirmation of either chart pattern.
Price action for the DXY (US dollar currency index) is provided on a Daily timeframe with coverage of well over 6 months of price action. The chart patterns in consideration are an ascending triangle and also a rectangle top formation. The former is ideally bullish, while the latter is ideally bearish. It is important to keep in mind that these are the ideal expectations for the patterns mentioned but they can also appear in a continuation position on a chart.
Hence, trend can proceed even with the appearance of a rectangle top formation and a bullish breakout occur. Oppositely, a bearish breakout can occur from an ascending triangle and the non-confirmation of the pattern itself can result in severe bearish consequences or move.
In either case, the width of the pattern is marked on the chart and should be used for projection on eventual confirmation of either chart pattern.
