The USDCHF has been an excellent currency for trend traders in modern times. Uncomplicated trades at resistance points have allowed for many opportunities to catch long term trend following positions. We have identified potential Swiss Franc longs on several occasions when citing our “currency correlation relative strength” method.
I believe strongly in trading with the trend but as a price-action trader my focus is drawn towards a bullish weekly hammer candle like this one. The volatility that is captured within this USD/CHF candle and the fact that the bulk of the candle is formed of the lower wick) make it an outstanding example. This candle has also formed following an established down-trend which is the ideal place to find them.
Looking at the negatives. This has to be considered as a counter-trend signal. There is also no previous support level to cite as USD/CHF has been coming into record lows for quite some time now. Longer time-frame positions can also be very demanding on the management front if the trader is not good at leaving the trade to run its course; these weekly candles can take quite some time to reach the targets – if at all.
All the same -this candle is the first bullish reversal signal on Swissie for a long time and therefore it is worthy of my attention.
Do not take this as a recommendation to trade. Two traders could easily take a long position on this and one could profit while the other one takes a full loss. If you have an interest in price action analysis it is worth spending time learning how to trade on demo before using any real funds.
Success to you.
forex-fx-4x
Swiss Franc Technical Reversal Signal
The USDCHF has been an excellent currency for trend traders in modern times. Uncomplicated trades at resistance points have allowed for many opportunities to catch long term trend following positions.
We have identified potential Swiss Franc longs on several occasions when citing our “currency correlation relative strength” method at forex-fx-4x. I believe strongly in trading with the trend but as a price-action trader my focus is drawn towards a bullish weekly hammer candle like this one. The volatility that is captured within this USD/CHF candle and the fact that the bulk of the candle is formed of the lower wick make it an outstanding example. This candle has also formed following an established down-trend which is the ideal place to find them.
Looking at the negatives. This has to be considered as a counter-trend signal. There is also no previous support level to cite as USD/CHF has been coming into record lows for quite some time now, see this Swiss Franc forex news for an example. Longer time-frame positions can also be very demanding on the management front if the trader is not good at leaving the trade to run its course; these weekly candles can take quite some time to reach the targets – if at all.
All the same – this candle is the first bullish reversal signal on Swissie for a long time and therefore it is worthy of my attention.
As ever, do not take this as a recommendation to trade. Two traders could easily take a long position on this and one could profit while the other one takes a full loss. If you have an interest in price action analysis it is worth spending time learning how to trade on demo before using any real funds.
Success to you.
forex-fx-4x
The author can be found writing on this forex trading blog amongst other sites.