Like what I see on EURCHF. Just in terms of market movements, we had a downtrend with multiple lower highs and lower lows, and then this trend began to exhaust once lower lows stopped being made. We went into a range which shows this exhaustion.
We then broke above previous lower highs nullifying the downtrend. We had our first higher low at 1.0890 and we may make another higher low here.
So two ways to enter: 1) Enter now on this retest. You have a better risk vs reward ratio but probability of success is lower. Why?
2) Await for the higher low to be confirmed which means we REQUIRE A HIGHER HIGH! Meaning a break above recent highs at 1.0965. Risk vs reward will still be good and your probability of success is much higher due to this confirmation.
Looking for a move to the 1.1040-60 zone.
We then broke above previous lower highs nullifying the downtrend. We had our first higher low at 1.0890 and we may make another higher low here.
So two ways to enter: 1) Enter now on this retest. You have a better risk vs reward ratio but probability of success is lower. Why?
2) Await for the higher low to be confirmed which means we REQUIRE A HIGHER HIGH! Meaning a break above recent highs at 1.0965. Risk vs reward will still be good and your probability of success is much higher due to this confirmation.
Looking for a move to the 1.1040-60 zone.