CAD/CHF - Trend Continuation (Short)
Chart with historical touches
Chart with historical touches
Current Daily Chart
Hi Traders
CAD/CHF is retesting 0.8850-0.8870 range which acted as a good support & resistance level. The pair is in down-trend since August 2012 in Weekly chart & since May 2013 in Daily chart. RSI is in convergence in Monthly, Weekly & Daily time frames.
IMPORTANT: Trade will only be valid if current bar closes at 0.8848 or lower which will make it a high test bar.
Pair scoring following points for Trend Continuation:
1. Lower Highs & Lower Lows
2. Below 50 & 200 EMAs
3. Horizontal Resistance (0.8850-0.8870 range)
4. RSI Convergence
5. Bearish Price Action (Possible High Test Bar)
6. No Major level of support in the way
7. FIB resistance level (Retracement Level 0.382)
PS. CAD & CHF both are becoming weaker in their crosses, so this trade might not trigger & hover around & below the range.
Hi Sajid,
ReplyDeleteI have also noticed that there would have been a set up candle for this trade on Friday. The high of that candle was broken today which would basically provide us with a better entry. Isn't that a reason for concern? Additionally, it was labor day in the US -> is candle still representative because of trading volume in the us?
I have checked the volume in different time frame, its not significantly low as CHF being European currency compensated in the volume.
ReplyDeleteI checked it with VSA methodology, it gave a sign of Weakness called Upthrust, next one would be No Demand before market falls. I hope it will work out for us. Fingers X
Hi Sajid
ReplyDeleteFor continuation shorts are you not meant to take RSI convergence on lower lows for both price action and on the RSI? In this case your arrow showing the RSI convergence is on the highs but as a short continuation you should be using the lows on RSI. The RSI on the lows here is looking like it is maybe lower but not clear.
Matt
yeah, you are right, it was a mistake, thanks for your input.
ReplyDelete