GBPCHF 4H 340pip SELL. For week starting 29.3.21Wagwarn my slimes please leave feedback to help me improve and trade safe.
We're looking at GBPCHF here which is very very overbought so we're looking at a nice sell. We may be abit late to this move but market open will delay if a bit for sure with some volatility and spread AIDS.
Price has been ranging since the 11th March and we've seen that resistance tested 6 times since then telling us it's super strong so we can definitely expect price to reject this time around. I'll be looking to short this right after the next candle close after market open (as long as the spreads have reduced).
We can see hidden bearish divergence which is much stronger on the stochastic than it is on the actual price chart - let's remember divergence is binary so it's happening or it isn't. Our stochastic indicator is super high at 92.5 (at it's peak) which is the highest it's been in a long while so we can definitely expect a big sell move on it's way.
TDI is supporting this move nicely, The red line has recently crossed over the green line right at the top of the channel just under the top band, showing that the bulls have taken over and that price is currently overbought. The red line broke out above the Bollinger bands (shark out of the water) which is another indication price is massively overbought meaning a sell is coming. Even further, the TDI's Bollinger bands are diverging, showing that volatility is increasing- hopefully this is the end of the ranging period.
I would set my TPs as so:
TP1: 1.287 60pips
TP2: 1.278 150pips
TP3 (runner): 1.2587 340pips
If you ask me this move is going to happen on monday or tuesday so keep a careful eye on this pair as these confluences are interesting.
Have a good week
Vince / Vmoney
