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Palladium Consolidates in Symmetrical Triangle on H4 Timeframe

Summary:
Palladium is trading in an unstoppable long-term uptrend for two years now. Its recent price action on the 4-hour chart suggests a consolidation in a symmetrical triangle, which can be used as a bullish signal in case of an upside breakout. Although, arguably, it is not the perfect symmetrical triangle (the top border is rather rough), the formation can produce a valid trading opportunity if used wisely. You can see the borders of the triangle marked with the yellow lines on the chart screenshot below. The cyan line offers a convenient entry point located at 10% of the triangle’s width (at the base) above the upper border. The buffer equal to the whole width is used to position the green line, which is a potential take-profit level for a breakout trade. Stop-loss can be set to the low

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Palladium is trading in an unstoppable long-term uptrend for two years now. Its recent price action on the 4-hour chart suggests a consolidation in a symmetrical triangle, which can be used as a bullish signal in case of an upside breakout. Although, arguably, it is not the perfect symmetrical triangle (the top border is rather rough), the formation can produce a valid trading opportunity if used wisely.

You can see the borders of the triangle marked with the yellow lines on the chart screenshot below. The cyan line offers a convenient entry point located at 10% of the triangle’s width (at the base) above the upper border. The buffer equal to the whole width is used to position the green line, which is a potential take-profit level for a breakout trade. Stop-loss can be set to the low of the breakout candle or to the low of the preceding candle in case the breakout candle trades mostly outside the triangle. Trading bearish breakouts with this continuation pattern would be imprudent. You can click on the image to see a full-size version:

Palladium Consolidates in Symmetrical Triangle on H4 Timeframe

The chart was built using the ChannelPattern script. You can download a MetaTrader 4 chart template for this palladium pattern. You can also trade it using the free Chart Pattern Helper EA.

If you have any questions or comments regarding this symmetrical triangle pattern on the chart of palladium, please feel free to submit them via the form below.


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Andriy Moraru
I've been trading Forex since August 2005. Learned MQL4 coding in 2006 and switched to MQL5 in 2009. My approach to trading is based on chart patterns and strict low-risk money management with conservative one-entry one-exit position sizing.

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