Hi guys, today I want to share with you my very quick analysis about
USDCHF
.
In the 4H chart we are in a clear downtrend but looks it is showing sign of trend inversion.
However we are taking a short trade, so we can say that we are still in favor of the trend.
At the moment the price has reached the supply zone of the last maximum and has already shown a small rejection.
This is the first sign of a possible retracement.
The second comes by the RSI.
We can clearly see a divergence between the price and the RSI, which added to the presence of the supply zone supports my idea of the possibility of this retracement.
The perfect entry point was at the touch of the supply zone, but now we are late.
We can still enter when the price break the last swing low on a 1H chart and placing our stop loss at the last swing high.
There are three possible target for this trade:
- the last demand zone (between 0.98123 and 0.97977);
- the trend line that follow the trend;
- the SMA(200);
Personally I advise you to use a trailing stop based on a 1H chart view and move it at the high of every swing.
For any question or suggestion, comment below.
Thanks for reading.
USDCHF
. In the 4H chart we are in a clear downtrend but looks it is showing sign of trend inversion.
However we are taking a short trade, so we can say that we are still in favor of the trend.
At the moment the price has reached the supply zone of the last maximum and has already shown a small rejection.
This is the first sign of a possible retracement.
The second comes by the RSI.
We can clearly see a divergence between the price and the RSI, which added to the presence of the supply zone supports my idea of the possibility of this retracement.
The perfect entry point was at the touch of the supply zone, but now we are late.
We can still enter when the price break the last swing low on a 1H chart and placing our stop loss at the last swing high.
There are three possible target for this trade:
- the last demand zone (between 0.98123 and 0.97977);
- the trend line that follow the trend;
- the SMA(200);
Personally I advise you to use a trailing stop based on a 1H chart view and move it at the high of every swing.
For any question or suggestion, comment below.
Thanks for reading.
Trade active:
I joined short on reaching the last swing low (0.98881).
My goal was fibonacci level 38.2 and that's where the price arrived... but because of the spread the operation was not closed to target.
My goal was fibonacci level 38.2 and that's where the price arrived... but because of the spread the operation was not closed to target.
Trade closed: stop reached:
Stop loss hit at 0.99115.
Lesson learnt: do not put your take profit at the exact point where you think the price will come, but put it at a distance dictated by the average of the spread offered by your broker.
Thanks spread.
Lesson learnt: do not put your take profit at the exact point where you think the price will come, but put it at a distance dictated by the average of the spread offered by your broker.
Thanks spread.