Jthomastrading

CAD/CHF PART 2 TREND ANALYSIS / TRADE ENTRY

OANDA:CADCHF   CAD/CHF
Firstly on the weekly timeframe we have has our fourth touch with a rejection from a key area (YELLOW BOX). Then on the daily and 4 hour timeframe we start to see a reverse head and shoulders pattern forming (PURPLE BOX). taking this into account with the key area being touched, if the pattern develops this would give me indication that we are going into a bullish market. To be sure we was in a bullish market we would wait for a breakthrough of the previous resistance, then a pull back using that previous resistance now as a support. Lastly we would be looking for candlesticks that are reacting to the support, this would signal for a buy entry.