EURCHF Short Direction: - PFH (Peak Formation High) established 3 days ago which started a Bearish Cycle. - Bearish Momentum is seen on the H4 as lower lows and lower highs are being formed.
Entry: - Price point was held for multiple hours over two days, and no candle closed above this point. Multiple candles pinned this point, indicating the high was going to be kept and it was going to be the high of the day. Price action showed this high was not going to get broken. - 200 EMA acted as a resistance point for the high, giving me more confidence it was not going to break that point. Candles pinned that high and the 200 EMA. - M (Double Top) Pattern formed on the H1, which indicated a probable strong drop in the pair on the Bearish Cycle. - Shark-fin (RSI crossed back into the volatility bands) was seen on the H1 on the first leg of the M (Double Top) Pattern. Confirmation that price will most likely start to drop soon. - I entered on the M15 to get a precise entry once I saw the RSI cross the Signal Line on the H1. This was my entry.
Exit: - 11 pip SL @ just above the high (just in case they pin it again). - 29 pip TP @ the point where RSI crosses back above the Signal Line. This was my exit.
Great explanation on how you took your trade!
Just some feedback however. You might want to do a video as it's abit tough for your followers to follow all the words and read your description at the same time!
Just wondering what is your outlook on EURCHF now?
We are looking to go short and would love your feedback! :)
FotiosDimitriou
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@FXCM, Thank you for the feedback, I appreciate it.
As of EURCHF, it is still in a Bearish Cycle for me and on the higher time frame it still has Bearish Momentum, so my main focus is on taking it short at the moment. Have to wait till Monday though due to US Bank Holiday.
market_cond
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What about the double bottoms on the 1st July and 2nd July????!
FotiosDimitriou
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@augux81, It was in a Bearish Cycle, so i was mainly looking to short, but you could have possibly counter-trended that.
market_cond
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@FotiosDimitriou, Actually after a trial to create a new high on the 30th june, and failed, I exited, and I am not in yet. I think I want to wait for retest on 1.6000 area, if at all it will happen, and see how the momentum looks like before to actually take a trade, but I have more prospects for Bullish entry, especiall after looking at the double multi day bottoms creating lower lows at 1.06130 and 1.06200, the struggle on closing above 1.06200 will signal my LONG entry. Thank you.
FotiosDimitriou
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@augux81, It is still holding that low on the H4/H1, so I will need to see how it reacts first. If it breaks that low on Monday I would still short it, if it bounces back off it, it could be a buy. Thank you for your useful insight.
market_cond
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@FotiosDimitriou, That is great, my patiency is the same, to wait for the reaction around that major support zone. Upon exhibit of a good upward moment, I will BUY one test position on re-test of the seversal/multi previous months resistance which is now major support. Thank you, lets observe the haapening reaction.
Just some feedback however. You might want to do a video as it's abit tough for your followers to follow all the words and read your description at the same time!
Just wondering what is your outlook on EURCHF now?
We are looking to go short and would love your feedback! :)