Cup and Handle Pattern on USDCHF

I have discovered this Cup and Handle pattern for a while and it has helped me in many forex pairs, indices and even commodities which I trade.

This is an inverse Cup and Handle pattern and the right handle is formed with the green lines. By drawing a line (upper channel - black) touching the peak of the base cup and touching the various peak downwards, one can easily identify a good entry point to buy USDCHF (ie. 0.96451)

The challenge is the multiple green lines formed before it breakouts (also known as consolidation or whipsaw to flush out the weak buyers). Did you notice it went 3x below the 21EMA , fooling those who relying strictly on one indicator to give up buying. Worse, the high and lowest price range is about 300 pips which means if one has a tight stop loss, he would be wiped out easily.

Hope this is helpful. It is still a buy for me as the price action is sitting above 21ema and on lower timeframe, 1H, it is showing a nice flag pattern, another bullish sign.

Buy on accumulation.

Comment:

Nice bullish engulfing candle and the price close above 21EMA. we enter a position at 0.99385, SL 0.99012. If one goes to a lower time frame, 1H, you could see the price action has break out from the 50% FIB level at 0.99331 and is charging northwards now at 0.99413. There might be some pull back at the 61.8 FIB level, i.e. 0.99531, giving us another opportunity to long this pair once more.

We remain bullish on this pair

Comment:

oops, we didn't make it again......

it could fall further to the 50% FIB level before finding some support. We aint selling for now but rather monitoring......