My prediction is that there is a great opportunity for a short position on the EURCHF. As the picture confirms the title of this idea that there is a Bearish Bat pattern. This means we are expecting a short position where you stand a chance of making anything around 200 pips of Profit against a rough figure of 50 pips loss. This is means you are dealing with a rough risk/reward ratio of 1:4 in favour of profit. This also means if you make a mistake there is chance to redeem yourself simply because of the ratio as shown in the chart.
The Stop Loss Area is basically anywhere above 1.11593. Just remember that, that is the area to pull out because you would have lost you 50 pips. I chose this area because based on the lines of resistance from previous structure, it doesn't really tell us that price will have a strong place of resistance. We only see expected resistance at the beginning of the bat pattern around x. You want to keep your risk as minimised as possible, so this is the best place to pull out.
Same thing goes for the Take Profit region. I placed the target for between 1.09000 and a.08765. This is because the price will most likely retrace around this area or slightly under it. This area is good in case you get greedy and forget you are trading when anything can happen.
Lastly because this is a Daily Chart analysis, it means the short position will take something north of 2 weeks to complete and reach the take profit region. For entry in to the market that will be all up to you friends. Stick to your strategy and you will surely make some good profits off this trade.
The Stop Loss Area is basically anywhere above 1.11593. Just remember that, that is the area to pull out because you would have lost you 50 pips. I chose this area because based on the lines of resistance from previous structure, it doesn't really tell us that price will have a strong place of resistance. We only see expected resistance at the beginning of the bat pattern around x. You want to keep your risk as minimised as possible, so this is the best place to pull out.
Same thing goes for the Take Profit region. I placed the target for between 1.09000 and a.08765. This is because the price will most likely retrace around this area or slightly under it. This area is good in case you get greedy and forget you are trading when anything can happen.
Lastly because this is a Daily Chart analysis, it means the short position will take something north of 2 weeks to complete and reach the take profit region. For entry in to the market that will be all up to you friends. Stick to your strategy and you will surely make some good profits off this trade.
Trade closed: target reached