Price formed a double bottom and broke the descending TL. Look for price to retest the TL and reject it before going long on this pair. Targets can be all the way up to the first point of the TL at 1.257
- According to autochartist database the Head and Shoulder Pattern has 81% of accuracy in it's completion. This by itself is a reason for me to enter the trade.
- I expect a double bottom to be formed after the head and shoulders completion.
- Double bottom is a 79% accuracy pattern so, target 2 and 3 has low chance of being hit.
As the major trend on the higher time frames is an UPTREND and IF a double bottom pattern formed here buy USDCHF till the next resistance point @1.0040 stop loss @ 1.0018 with risk reward ratio 4.4. good luck and trade safe
Initially, I was looking at the above setup as a bearish rejection from the resistance trendline.
To not let my bias get the best of me, I also noticed that the two arrows point to a double bottom.
- Notice how the second bottom is a higher low than the first bottom, indicating bullish pressure and the inability of bears to push price down below the previous...