The first thing you’ll notice is the length of time the market consolidated within this wedge pattern before breaking higher. The setup above formed on the daily chart, so from start to finish this consolidation period lasted for 180 days.

This brings me to an important observation about the Forex breakout strategy – the longer the market consolidates, the more volatile the breakout will be. This isn’t always the case, but 9 times out of 10 the market respects this idea of matching the length of consolidation to the level of volatili