USD/CHF
In addition to Tom’s e-mail that Swissie will go short
before hitting the strong level of support 0.8935 to go long, I can see a setup
on this pair. We have another confirmation from Adam which is anxiously
expecting EUR/USD (which is an inversely proportional to Swissie) to go long as
it’s taking a support of a good level 1.3142. According to currency correlation
chart Euro & Swissie are mirror image of each other so they snake each
other, if one goes short then other goes long & vice versa. This indicates
a short move is likely on USD/CHF.
But I can see a strong problem in this setup as it’s missing
a compulsory first point of check list, which is Lower highs & Lower lows. Tom
said that we should start trading (Trend Continuation) from the Phase 1 of
second cycle as the first cycle verify the Trend Continuation. The chart is
about to complete its second cycle Lower high & Lower low. In its last
cycle it failed to make a lower high as the previous high matched with its last
high. So if we take previous cycle as invalid cycle then we can’t trade this
setup as a Trend Continuation in this cycle. Otherwise it’s scoring 6 points but
missing the compulsory one.
1. Inside bar & high test bar as well
2. RSI Convergence
3. Fib Retracement Level / Resistance 0.786
4. Resistance of 200 EMA
5. Trend Line Resistance
6. No strong level of support in the way
So I am less inclined to take this trade, let’s see what
other members think about it.
Please click the image to inlarge it.
Please click the image to inlarge it.
