USDCHF Potenntial Trend Continuation Pattern
Updated
Note: As always, before getting into my analysis I want it made very clear that this is just more of me practicing my chart analysis skills, and that I am not taking this trade in real life. I have not back-tested this particular strategy on the USDCHF , so I do not know how likely or unlikely this type of trading strategy would work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation, once again, the market nearly touched my entry but then subsequently turned around, and now looks like it intends to continue to fall and not even give me an opportunity to get involved. So, this may end up resulting in no opportunity to hypothetically get involved. That being said, this is trading, anything could happen.
My thought process is that because the market broke below the previous lower low of 0.9854, and then closed below those lows @ 0.9694, this is a signal that the market intends to head lower thereby continuing the trend. If my analysis is correct, there may be an opportunity to get involved if this market retraces back into previous structure (which should now turn from support into resistance). So, if the market gives me the chance, and retraces back into the 0.618 Fib level @ 0.9892, I will hypothetically short the market and place my target @ 0.9694, and my stop loss 10 pips above the highs @ 1.0024. That being said, we'll have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
For all the Americans out there, have a happy and safe Fourth of July!!
As always, know the risks, plan accordingly, and have a great day.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation, once again, the market nearly touched my entry but then subsequently turned around, and now looks like it intends to continue to fall and not even give me an opportunity to get involved. So, this may end up resulting in no opportunity to hypothetically get involved. That being said, this is trading, anything could happen.
My thought process is that because the market broke below the previous lower low of 0.9854, and then closed below those lows @ 0.9694, this is a signal that the market intends to head lower thereby continuing the trend. If my analysis is correct, there may be an opportunity to get involved if this market retraces back into previous structure (which should now turn from support into resistance). So, if the market gives me the chance, and retraces back into the 0.618 Fib level @ 0.9892, I will hypothetically short the market and place my target @ 0.9694, and my stop loss 10 pips above the highs @ 1.0024. That being said, we'll have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
For all the Americans out there, have a happy and safe Fourth of July!!
As always, know the risks, plan accordingly, and have a great day.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Trade closed: target reached
Wow! So the market took forever (over a month) to finally make up its mind as to what it was going to do. But the wait finally paid off. Unfortunately, the market played around my entry for quite some time, but eventually rolled over to hit my target. Having said all that, hope you guys enjoyed this one, and I'll see you in the next one!
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