Would this be considerd a pennant or falling triangle? 1hr chart AUD/USD
Also how are those lines looking? Have I put them in the right spot
It looks something similar to both, and I don’t know of any precise objective distinguishing feature between the two. So any suitable trade strategy for either would be a valid next step. I’m not sure that working on the precise positioning of such boundary lines is likely to be productive.
At this point the classic guidance on trading such patterns says that you should consider getting long on a break-out above the pattern’s upper boundary not much more than two-thirds of the distance from base to apex. And we’re almost there.
I was hoping the resistance would hold and id see anther bounce off the support. You can see where ive placed my Sell stop, S/L and T/P. What do you think about their placement?
Ill hold out for confirmation of a break-out and go long like you suggested.
This is just a demo account by the way…
I think for a short trade these are workable price levels, though I don’t personally like the strategy. The strategy will work if the resistance level resists price - often this does happen but in any case it need not happen more than 50% of the time as long as your r:r is positive.
But for me personally, selling into a tapering price feature like this is high risk - like accelerating towards a traffic light that’s about to go red - price is too likely to break out upwards.
There is a place for a strategy that identifies a zone of congestion and which will get you long or short depending on whichever way price breaks out. Let the market show you.
I’ll keep an eye on this pair in the coming days. Thanks for the insight 
It looks like we’ve got a symmetrical triangle on our hands, not a pennant or a falling triangle. Basically, symmetrical triangles happen when the trend lines come together at a similar slope, which means buyers and sellers are pretty much balanced out. A pennant usually pops up as a tiny symmetrical triangle after a big price move, while a falling triangle would have a flat bottom and the top trend line sloping down.
That’s a very tough question, as to whether precision matters when drawing technical lines.
I think what matter is understanding the overall market strength.
Here’s an uptrend, and as a matter of fact, a reversal likely to occur.