Trading Setup for CHF/USD – Triple Bottom Breakout Strategy

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📌 Chart Pattern: Triple Bottom with Trendline Breakout

This CHF/USD chart showcases a triple bottom formation, a bullish reversal pattern that signals a potential uptrend after three consecutive lows at a strong support level. The price action respects this support zone and attempts a trendline breakout, suggesting a shift in momentum from bearish to bullish.

📊 Full Chart Breakdown & Professional Analysis

1️⃣ Key Levels & Structure:
✅ Support Level (1.1300 - 1.1270):

The price has tested this region three times, indicating strong buying interest.

This forms a triple bottom, a reliable reversal pattern in technical analysis.

✅ Resistance Zone (1.1400 - 1.1420):

The price previously reversed from this zone, making it a key short-term resistance level.

✅ Target Level (1.1457):

A breakout above resistance could drive the price toward this measured move target, representing a 1% potential gain.

✅ Stop Loss (1.1269):

Placed below the support zone to minimize risk in case of a breakdown.

2️⃣ Price Action & Trendline Breakout:

📌 Triple Bottom Formation:

Price hits the same support level three times, signaling strong demand.

Each bounce from support indicates a gradual weakening of bearish momentum.

📌 Trendline Breakout:

The price broke a downward-sloping trendline, suggesting a potential bullish move.

A successful retest of the trendline could confirm further upside.

📌 Expected Move:

Scenario 1: Price confirms the breakout, retests, and moves toward resistance.

Scenario 2: If resistance is broken, price targets the next major level at 1.1457.

3️⃣ Trading Strategy – How to Trade This Setup?

🎯 Buy Entry:

Enter long after a confirmed breakout and retest of the trendline.

📉 Stop Loss:

Below 1.1269 (beneath triple bottom support) to limit downside risk.

🎯 Take Profit Targets:

Target 1: 1.1400 (Resistance Area)

Target 2: 1.1457 (Measured Move Projection)

💡 Risk-Reward Ratio:

Favorable risk-reward ratio of 1:3, making it an attractive setup for traders.

4️⃣ Market Psychology Behind This Move:

Bears losing strength: Multiple failed attempts to break support indicate sellers are exhausted.

Bulls gaining momentum: Trendline breakout shows buyers are stepping in with confidence.

Breakout confirmation: If resistance breaks, a strong rally toward 1.1457 is likely.

📌 Summary: Bullish CHF/USD Trade Idea
🔹 Pattern: Triple Bottom + Trendline Breakout
🔹 Entry: Buy on retest confirmation
🔹 Stop Loss: 1.1269
🔹 Target: 1.1400 & 1.1457
🔹 Risk-Reward: Favorable 1:3 setup

🚀 This is a high-probability trade setup with strong technical confirmation, making it a great opportunity for breakout traders! 🚀

Penafian

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