Earlier today I posted an idea about how I think price action breaking resistance could have acted as a false breakout. After reviewing the market again, I managed to find something I wasn't seeing before: There is a pretty clear descending channel on the Weekly chart.
This breakout can certainly be a breakout on the weekly timeframe and will play out over the next couple of months. The patient can enter the market and expect to make around 700 Pips should the pattern complete its reversal. The 15 Min and 1HR charts already show sign of a pullback and are ready to blast off after touching the new support line.
This trade will offer multiple scale-in opportunities so keep a watchful eye out for CHFJPY!
This breakout can certainly be a breakout on the weekly timeframe and will play out over the next couple of months. The patient can enter the market and expect to make around 700 Pips should the pattern complete its reversal. The 15 Min and 1HR charts already show sign of a pullback and are ready to blast off after touching the new support line.
This trade will offer multiple scale-in opportunities so keep a watchful eye out for CHFJPY!
Comment:
Looking in at the D chart, we can see a corrective channel where price touches the bottom of the structure 3 times. This is a well-known rule that after touching the pattern 3 times, it will reverse and break out. This further backs my bullish position on CHFJPY
