is this what i think it is? (Descending triangle breakout?!)Over the last few days the USDMXN pair has developed lower highs and is showing signs of an early development of a descending triangle pattern. Being that this is coming off an uptrend, we can assume if it has at least 3-4 taps on the support/liquidity zone around 20.10 , it can go from 20.10 on the last tap straight into 20.85-21.00 , given that the extension of the breakout is usually around the length on the mouth of the triangle. Hoping this plays out as I did hit a stop loss on my previous analysis of shorting the peso into 19.50. Previously I failed to mention what could happen if this reverses and breaks the 20.10 level, if it does happen to reverse on our call, this can also break the 20.10 level, plunge into 20.00 , back to test new resistance of 20.10 then down to the next heavy level of resistance at 19.90-19.80 . Stay alert, take my analysis with a grain of salt, and lastly, lets get this smuddy. LOVE Y'ALL!
- Lui
Entry 1 TP1 (LONG)
20.09 20.40
Entry 2 TP2 (SHORT)
20.40-41500 20.10
Entry 3 TP3 (LONG)
20.10 20.80-21.00
PS, I've linked a reference for you all to check out on how the pattern looks, how it can play out if it does develop. Also each one of the trades I take has only a 1% Stop Loss in case the markets do not move my way.
