7 Dimension Analysis For CADCHF

Optimum369 Updated   
FX:CADCHF   Canadian Dollar/Swiss Franc
πŸ•› TOPDOWN - Bearish Continuation Setup for CAD/CHF

Overview: The monthly and weekly analyses signal a bearish trend, validated by a series of bearish breakouts and consolidations. The focus is now on the daily timeframe for a detailed perspective.

πŸ˜‡ 7 Dimension Analysis
Time Frame: Daily

1️⃣ Swing Structure: Bearish - 68% probability of further downward movement.
🟒 Structure Behavior: Break of Structure (BoS).
🟒 Swing Move: Impulsive.
🟒 Inducement: Breakout with liquidity sweep indicating continued bearish momentum.
🟒 Pull Back 1st: Awaiting confirmation, position holding is crucial.
🟒 Internal Structure: Bearish.
🟒 Ext OB: Unmitigated.
🟒 Support Breakout CIP: Acts as resistance.
🟒 Post-Breakout Quality: Clearly favors bears, evident in small consolidation with bearish candle size and multiple wicks.
🟒 Traps: Shakeout observed, indicating bearish sentiment.
🟒 Time Frame Confluence: Daily.

2️⃣ Pattern

Reversal: Head and shoulders, double top.
Continuation: Bearish flag with a 38% tilt, shakeout continuation with flag consolidation.
Consolidation Rectangle: Small consolidation with shakeout liquidity.
Key Considerations:

Record session count with multiple dojis signals change in guard.
Long wick bearish closing indicates rejection from multiple wicks and doji area.
Momentum signals include strict engulfing.
3️⃣ Volume:
🟒 High volume on the breakout confirms its validity.

4️⃣ Momentum RSI:
🟒 Momentum is in a super bearish zone.
🟒 Range shift is evident with proper bearish indications.
🟒 Divergence: Hidden bearish divergence observed at the start of the move.
🟒 Loud moves: Momentum shifted from sideways to bearish with a loud move.
🟒 Grandfather-father-son entries indicate a strong bearish setup.

5️⃣ Volatility Bollinger Bands:
🟒 Middle band rejection at the middle band.
🟒 Squeeze starting indicates potential consolidation for volatility compression, followed by a wild bearish move.

6️⃣ Strength According to ROC:
🟒 ROC values: CAD 0.37 vs CHF 1.31, indicating CHF is much stronger.

7️⃣ Sentiment: All market parameters and top-down analysis indicate that CAD is under substantial pressure against CHF. The sentiment suggests looking for sell opportunities.

βœ”οΈ Entry Time Frame: Daily
βœ… Entry TF Structure: Bearish
β˜‘οΈ Current Move: Impulsive
βœ” Support/Resistance Base: Bearish post buildup.
β˜‘οΈ Candles Behavior: Bearish long wicks, bearish momentum.

πŸ’‘ Decision: Sell at open.
πŸš€ Entry: 0.6443
βœ‹ Stop Loss: 0.6505
🎯 Take Profit: 0.6118
2nd Exit if Internal Structure Changes, 3rd Trendline Breakout, FOMO.
😊 Risk to Reward Ratio: 1:4.5
πŸ•› Expected Duration: 30 days

SUMMARY: The analysis strongly supports a bearish continuation setup, aligning with the monthly and weekly bearish trends. Key indicators such as candle patterns, volume considerations, and momentum signals reinforce the sell decision. The strategy involves clear risk management and exit criteria.
Trade active:
"The inside bar with an upper-side long wick in the closing suggests more downside potential."
Trade active:
The market remains in the same position as when we entered. All parameters align with our analysis, and nothing has shifted. We maintain our position."
Trade active:
Despite a strong bullish move during Friday's closing, our analysis remains intact, and we can confidently hold our position."
Trade active:
"This pair is currently in a prolonged consolidation phase with contracting volatility and momentum. The next breakout is anticipated to provide a strong downward momentum and volatile move. Considering the existing strong bearish trend, a significant move is expected."
The market remains in consolidation; no significant changes have occurred. Maintain the current position.
We maintain our position with unwavering confidence, as the analysis and market structure on our timeframe remain unchanged. Staying committed to our strategy. #ProfessionalTrading"


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