EUR/CHF Bearish White Swan Pattern
A bearish trade opportunity for EUR/CHF, something which is
long over due as this pair has been overbought for quite some
time. Now that price has reached the psychologically
significant level of 1.20 - though not having closed above it -
it seems likely that a correction to the downside is viable.
Interestingly also, the French election GAP below was
formed one year to date tomorrow, not necessarily indicative as
such that it will now be closed, however, if price breaks and
closes below 1.447 that GAP could very well become a target,
but we will see that then.
The first bearish trade setup is valid with a close below
1.1947, that would be a conservative entry. The ATR value
I got from the high of the breakout (26.03.2018) which was
57 pips and Fridays close with a reading of 47 pips, hence
the average equals 52. Obviously apply your personal
risk management to set appropriate stop/loss levels.
Keep in mind also that this coming Thursday the ECB
release their interest rate decision causing volatility not
only then, but also prior. Rumour has it that the ECB will
be more dovish than expected, so that could result in a
drop in this pair.
Trade 1 (RvR ratio 1.87 with ATR2)
Entry: Close below 1.1947
S/L ATR 1: 1.2053
S/L ATR 2: 1.2105
T/P 1: 1.867/26
T/P 2: 1.1785/26
T/P 3: 1.1651
Trade 2 (RvR ratio 2:1)
Entry: Close and rejection below 1.1651
S/L: 1.1753
T/P 4: 1.447
I would recommend scaling out your profits until T/P 4
whilst adjusting your stop/loss.
Happy trading
A bearish trade opportunity for EUR/CHF, something which is
long over due as this pair has been overbought for quite some
time. Now that price has reached the psychologically
significant level of 1.20 - though not having closed above it -
it seems likely that a correction to the downside is viable.
Interestingly also, the French election GAP below was
formed one year to date tomorrow, not necessarily indicative as
such that it will now be closed, however, if price breaks and
closes below 1.447 that GAP could very well become a target,
but we will see that then.
The first bearish trade setup is valid with a close below
1.1947, that would be a conservative entry. The ATR value
I got from the high of the breakout (26.03.2018) which was
57 pips and Fridays close with a reading of 47 pips, hence
the average equals 52. Obviously apply your personal
risk management to set appropriate stop/loss levels.
Keep in mind also that this coming Thursday the ECB
release their interest rate decision causing volatility not
only then, but also prior. Rumour has it that the ECB will
be more dovish than expected, so that could result in a
drop in this pair.
Trade 1 (RvR ratio 1.87 with ATR2)
Entry: Close below 1.1947
S/L ATR 1: 1.2053
S/L ATR 2: 1.2105
T/P 1: 1.867/26
T/P 2: 1.1785/26
T/P 3: 1.1651
Trade 2 (RvR ratio 2:1)
Entry: Close and rejection below 1.1651
S/L: 1.1753
T/P 4: 1.447
I would recommend scaling out your profits until T/P 4
whilst adjusting your stop/loss.
Happy trading