Expanding on my previous idea of apparent Double Top formation on this pair, I've gone into greater depth about the path that it might potentially take. The current trend that we can see the pair taking is outlined by the descending blue lines that form a clear channel. From this (and the overall double top), we can see that there is a higher probability that the price will continue to fall within this channel compared to it breaking through and reversing the overall trend. Then the question then becomes: How far will it drop and what will it look like? The fibonacci retracement lines that I've used here line up very well with past major S&R levels where the price bounced off of. If the price drops into the green zone, we can predict that it will drop to the 0.786 level, making stops at the 0.5 and 0.6 levels where it may experience some brief consolidation. The RSI level is also identical to that seen on the 8/03/2017 where it experienced a minor reversal to keep the price within this descending channel. The price may even dip below the 0.96768 level but this works for the purpose of illustrating the inner-workings of trading a descending channel within an apparent double top formation.
Of course this pattern could always turn on a dime, and although the USD is becoming calmer as a result of investors settling with Trump's presidency, there is still a chance that the price might adversely react and exit the channel entirely - so prepare accordingly.
Setup
Entry: 1.00082
SL: 1.00716 (Adjust to channel borders)
TP: 0.96768
Of course this pattern could always turn on a dime, and although the USD is becoming calmer as a result of investors settling with Trump's presidency, there is still a chance that the price might adversely react and exit the channel entirely - so prepare accordingly.
Setup
Entry: 1.00082
SL: 1.00716 (Adjust to channel borders)
TP: 0.96768
Dagangan aktif
Dagangan ditutup secara manual:
Closed the trade after my TS was hit; The Euro news has bolstered the CHF enough to invalidate this descending channel. Nice to know the initial structure was observed well-enough to net about 170 pips.
Komen:
The excitement following the Euro news seems to have tapered off and so this pair seems to have returned to this descending channel.
Dagangan ditutup: sasaran tercapai:
All targets have been hit for a total of 331 pips!