In my previous analysis of gold, I showed an ascending triangle pattern to be forming with all the relevant criteria met for such a pattern:
- A fake-out was seen just prior to the breakout, with price making a move below the ascending trend support of the pattern, and then subsequently making a move back inside the pattern
- Price then broke out as it reached the apex of the triangle.
- Typically, to calculate a target (TP) for this pattern, the high formed during the pattern, as well as the low of the pattern would be subtracted. With the pip range formed from this calculation being added to the breakout price.
- High of the pattern was 1508
- Low of the pattern was 1481
HIGH - LOW = 1508 - 1481
=>27 PIPS
Add this onto the breakout price (1508) and you get 1535 as the target price
- Price then broke out as it reached the apex of the triangle.
- Typically, to calculate a target (TP) for this pattern, the high formed during the pattern, as well as the low of the pattern would be subtracted. With the pip range formed from this calculation being added to the breakout price.
- High of the pattern was 1508
- Low of the pattern was 1481
HIGH - LOW = 1508 - 1481
=>27 PIPS
Add this onto the breakout price (1508) and you get 1535 as the target price