Expecting price to retest 7.5k .
2 potential options
Option 1 :
Aggressive sell limit - Lower R:R ratio but 100% guaranteed entry if price moves lower
Option 2 :
Sell on retest - Much higher R:R but price move lower without triggering you in.
Personally prefer option 2.
Big rejection that has caused the formation of a DSZ above.
2 Scenarios that are of interest to me :
A) Pullback into zone where I will be looking for valid entry trigger to the downside into DBZ. (Yellow arrows).
B) Pullback into DSZ above where I will be looking for valid entry pattern to the downside ( Potentially into DBZ but will take note of price...
Entered daily resistance & price looks like potential short formations are developing.
2 Scenarios I am watching.
A) Price goes back up to retest the high, in which case I watch for a valid (as per my trade plan) double top. (Yellow arrows)
B) Price hits short term support = deep retracement = presence of sellers above, in which case I watch for the formation...
Price has had major rejections off weekly levels and is forming lower lows and lower highs.
We have now formed a valid (as per my trade plan) head and shoulders pattern)
Shorting until Support zone below but will remove 50% of risk when we retest zone marked with teal.
Daily trend - down
At time of posting, 76.80% of Oanda positions are Long this pair.
66.3% are Long USDCHF.
Double top has occurred. Ready to short.
Move to breakeven if price gets to arrow level (~1.17) as daily structure is below.