GBPCHF - LONG TRADE ON DAILY
This chart shows another shorting opportunity for the Swiss Franc, with respect to the British Pound.
It is a longer trade than the previous one as the timeframe is daily. There are also two different targets and strategies that can be applied, depending on how much time you can wait for the realization of the scenario.
We see a very nice confluence of indicators and lines at the same level. When this happens, the overall idea gets strenghtened.
Indeed, at 1.22 we have the convergence of three signals. Firstly, it is the upper part of the ascending triangle and the point of control of the last downward leg. It is also the last level of the retracement area. It means that a price above it would mean that the bounce up from the minimum of 1.11 is most likely no longer to be considered as a retrace, but rather as a true impulsive up wave.
1.22 coincides with the Point of Control, the level at which most of the trades volumes were concentrated in the last period, and at which the battle between longs and shorts will be fought. Whoever wins, will pave the way and indicate the direction of the following move. This level has been tested many times and every time is gets weaker. In case of a breakout, the movement can be violent, therefore we would prefer to enter immediately and not wait for an eventual retest, that can be used to increase the position subsequently.
Targets and Risk Rewards metrics can be found on the chart.
What do you think of this idea? Let us know in the comments!
It is a longer trade than the previous one as the timeframe is daily. There are also two different targets and strategies that can be applied, depending on how much time you can wait for the realization of the scenario.
We see a very nice confluence of indicators and lines at the same level. When this happens, the overall idea gets strenghtened.
Indeed, at 1.22 we have the convergence of three signals. Firstly, it is the upper part of the ascending triangle and the point of control of the last downward leg. It is also the last level of the retracement area. It means that a price above it would mean that the bounce up from the minimum of 1.11 is most likely no longer to be considered as a retrace, but rather as a true impulsive up wave.
1.22 coincides with the Point of Control, the level at which most of the trades volumes were concentrated in the last period, and at which the battle between longs and shorts will be fought. Whoever wins, will pave the way and indicate the direction of the following move. This level has been tested many times and every time is gets weaker. In case of a breakout, the movement can be violent, therefore we would prefer to enter immediately and not wait for an eventual retest, that can be used to increase the position subsequently.
Targets and Risk Rewards metrics can be found on the chart.
What do you think of this idea? Let us know in the comments!
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