Thursday night we had identified some early accumulation within a tight trading range that was too soon to tell if it would results in a long breakout (it did).
You can see this steady and silent accumulation just before the pop to the upside.
It was very subtle, so subtle that we had picked up on it but could not distinguish its quality as a signal.
So we let the formation sit and do its thing overnight.
Upon reviewing the status of the pattern later in the London session we find the London open traders had held up the Euro in a tight continuation pattern which began to resemble a bull pennant, or even an ascending triangle pattern.
As soon as 2 upper and lower points had been created on the 1Hr chart, price broke out above the pattern.
You can see below how once the pattern was identified we quickly entered the long position.
The blue up arrow signifies the actual entry.
Unfortunately price did not continue higher to meet the measured move target objectives (yet). Instead price action pulled back to the top of the formation to test for support.
The chart from earlier this morning outlines this pattern early on and includes measured move targets...
The targets are based on the height of the flagpole preceding the flag pattern.
In this case of this trade being managed as a swing trade, we would have stops near 1.1692.