NZD/CAD Descending Triangle on Climactic Action Weekly Chart
The NZD/CAD has been in uptrend on the weekly and monthly charts for quite some time. What we see now is a head and shoulders pattern followed by a morph into a descending triangle (additionally, on the daily chart the head and shoulders pattern that is formed there as a "subpattern within the larger pattern" has a lower right shoulder than its left shoulder after completing, implying potentially greater weakness).
One basic principle is to think about where a pattern happens not just that it happens to determine its likelihood of working. In this case the context is one implying there could be a break through the floor of the pattern (because when this pattern has shown up in the past after a long uptrend and climaxing volume on large time frames, that has happened).
By a different volume feed, the highest volume bar is actually the week of the head of the shoulder (not shown here).
-Trade only with money you can afford to lose
-Always use a stop
-It's okay to be wrong about anything
One basic principle is to think about where a pattern happens not just that it happens to determine its likelihood of working. In this case the context is one implying there could be a break through the floor of the pattern (because when this pattern has shown up in the past after a long uptrend and climaxing volume on large time frames, that has happened).
By a different volume feed, the highest volume bar is actually the week of the head of the shoulder (not shown here).
-Trade only with money you can afford to lose
-Always use a stop
-It's okay to be wrong about anything
Watch for potential bat pattern/retracement near 0.98-0.99
(patterns can fail into others that succeed)