AUDUSD Megaphone

Submitted by ChartSecret.com on Tue, 09/15/2009 - 08:50
in

AUD\USD has created a very precise Megaphone chart pattern. The Megaphone pattern consists of two expanding trendlines. IT is generally a reversal chart pattern that usually breaks after 5 touches at the Support and Resistance trendlines. Pattern's size is 140 pips - a large pattern with good profit potential.

Trading:
Enter Short if price touches Resistance trendline. Use conservative profit target and price can easily reverse and break the Resistance trendline.
Enter Long if price breaks the Resistance and pulls back.
Enter Short if price breaks the Support trendline (lower trendline) and pulls back to it.

Target of all breakout trades is 140 pips.