Market Analysis:
Asset: CAD/CHF
Timeframe: 1-Hour
Pattern Identified: Head and Shoulders (bearish reversal pattern).
Neckline: The support level forming the base of the head and shoulders.
Trend Confirmation: Look for a bearish trend continuation after a break and retest of the neckline.
Trade Setup:
Entry Point:
Enter a sell position after the neckline breaks with confirmation (candlestick close below neckline).
Stop-Loss:
Place the stop-loss above the right shoulder or a recent swing high for safety.
Take-Profit Levels:
TP1: Measure the distance from the head to the neckline and project it downward.
TP2: Extend further to a strong support zone or round number.
Risk Management:
Position Size: Risk no more than 1-2% of your trading capital.
Risk-Reward Ratio: Aim for a minimum 1:2 R/R ratio.
Additional Confirmation:
Volume Analysis: Look for an increase in selling volume as the neckline breaks.
Indicators: Confirm bearish momentum with RSI below 50 and MACD bearish crossover.
Asset: CAD/CHF
Timeframe: 1-Hour
Pattern Identified: Head and Shoulders (bearish reversal pattern).
Neckline: The support level forming the base of the head and shoulders.
Trend Confirmation: Look for a bearish trend continuation after a break and retest of the neckline.
Trade Setup:
Entry Point:
Enter a sell position after the neckline breaks with confirmation (candlestick close below neckline).
Stop-Loss:
Place the stop-loss above the right shoulder or a recent swing high for safety.
Take-Profit Levels:
TP1: Measure the distance from the head to the neckline and project it downward.
TP2: Extend further to a strong support zone or round number.
Risk Management:
Position Size: Risk no more than 1-2% of your trading capital.
Risk-Reward Ratio: Aim for a minimum 1:2 R/R ratio.
Additional Confirmation:
Volume Analysis: Look for an increase in selling volume as the neckline breaks.
Indicators: Confirm bearish momentum with RSI below 50 and MACD bearish crossover.
Trade active
TP1 HitTrade closed: target reached
Both TP hit
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.