🔍 Overview of the Chart Setup
The CHF/USD (Swiss Franc vs. U.S. Dollar) 1-hour timeframe chart reveals a classic Triple Bottom pattern, which is a well-known bullish reversal signal. This pattern indicates that sellers have attempted to break the support level three times but failed, suggesting a potential shift in momentum from bearish to bullish.
Traders closely watch this structure as it often leads to a strong upward breakout once key resistance levels are breached. The current setup provides an excellent risk-to-reward trading opportunity, especially for those looking to capitalize on the breakout.
📊 Key Levels in the CHF/USD Chart
1️⃣ Support and Resistance Zones
🟢 Support Level (~1.1300 - 1.1280 Zone)
This zone has been tested three times, confirming strong buying interest at this price level.
The formation of long wicks on candlesticks signals strong demand and buyer dominance.
A breakdown below this level would invalidate the bullish setup and may indicate a continuation of the bearish trend.
🔴 Resistance Level (~1.1415 - 1.1430 Zone)
This level acts as a price ceiling, where previous bullish attempts were rejected.
A break and retest above this zone would confirm the Triple Bottom breakout.
🎯 Target Level (~1.1457 Zone)
The projected target is based on the height of the pattern, which is measured and added to the breakout point.
This level aligns with previous price action zones and acts as a natural take-profit area for traders.
🚨 Stop-Loss Level (~1.1243 Zone)
A stop-loss is placed below the support zone to protect against false breakouts or an invalidation of the pattern.
📉 Understanding the Triple Bottom Pattern
The Triple Bottom is a strong bullish reversal formation that occurs at the end of a downtrend. It signals that sellers are exhausted, and buyers are gradually taking control.
🔹 Breakdown of the Triple Bottom Formation
✅ Bottom 1 (First Low)
The first bottom forms when the price hits the support level and bounces back.
Sellers are still active, so price declines again to test the same support zone.
✅ Bottom 2 (Second Low - Confirmation of Support)
The second test of the support zone validates the demand area.
Buyers step in again, pushing the price upward.
The market still lacks enough momentum for a breakout, leading to a third retest.
✅ Bottom 3 (Final Low and Strong Rejection)
The third bottom is crucial because it signals the last test of support before a breakout.
The failure to break lower creates a higher probability of an upside move.
📌 Breakout Confirmation & Price Action Signals
🔵 The breakout is confirmed when:
The price closes above the resistance zone (1.1415 - 1.1430) with strong momentum.
Volume spikes during the breakout, indicating institutional buying interest.
A successful retest of the resistance zone as new support further validates the trend reversal.
If the breakout lacks volume or gets rejected, traders should be cautious of a fakeout or potential retracement.
📈 Trading Strategy & Execution Plan
🔹 Conservative Entry (Safe Approach)
Enter after a confirmed breakout above 1.1415, ensuring a strong candle close above resistance.
Look for a retest of the breakout level before entering the trade.
🔹 Aggressive Entry (Early Positioning)
Enter near the third bottom (~1.1300 - 1.1320) with a tight stop-loss.
Higher risk but better reward if the price moves upward without retesting.
🔹 Stop-Loss Placement
Conservative traders: Place the stop-loss below the support zone (~1.1243).
Aggressive traders: Place a tight stop below the recent swing low for better risk management.
📌 Profit Target Projection
Take Profit Target: 1.1457, based on the height of the pattern.
📌 Risk-to-Reward Ratio
Risk: ~60 pips (from entry to stop-loss).
Reward: ~150 pips (from entry to target).
Risk-to-Reward Ratio: 1:3, making it a high-probability trade.
📡 Additional Confirmation Indicators for Stronger Trade Setup
📊 1. Volume Analysis
A spike in volume at the breakout level suggests strong buyer interest.
Low volume on the breakout may indicate a potential fakeout.
📈 2. RSI (Relative Strength Index) Confirmation
RSI should be above 50 and trending upward to confirm bullish momentum.
If RSI is overbought (>70), watch for a pullback before entering the trade.
📉 3. Moving Averages Support
If the 50-period or 200-period moving average supports the breakout level, it adds extra confirmation.
A moving average crossover may further validate the trend reversal.
🔍 4. Beware of Fake Breakouts
If the price briefly moves above resistance but fails to hold, it may be a bull trap.
Always wait for a candle close above resistance and a potential retest before confirming the entry.
🛠️ Alternative Scenarios & Market Risks
🔺 Bullish Scenario (Breakout & Rally to Target)
Price breaks above 1.1415, confirming a trend reversal.
A retest of resistance as support gives additional buying confidence.
Price reaches 1.1457 target before facing new resistance.
🔻 Bearish Scenario (Fakeout & Breakdown Below Support)
Price fails to hold above resistance and falls back below support.
A breakdown below 1.1243 invalidates the pattern, triggering a bearish continuation.
Traders should cut losses quickly if the setup is invalidated.
⚠️ Fundamental Risks to Watch
U.S. Dollar news events (FOMC, NFP, CPI reports) can increase volatility.
Swiss economic data may impact CHF strength.
Unexpected geopolitical events can influence currency movements.
🔎 Summary of the Trading Plan
📌 Trading Strategy Checklist
✅ Pattern: Triple Bottom (Bullish Reversal).
✅ Entry Strategy: Buy after breakout confirmation above 1.1415.
✅ Take Profit Target: 1.1457.
✅ Stop-Loss Level: Below 1.1243.
✅ Risk-to-Reward Ratio: 1:3 (High-Profit Potential with Proper Risk Management).
💡 Final Thought:
This setup provides a high-probability bullish trade with strong technical confluence. However, always remain cautious of market news, economic reports, and sudden volatility that could influence price action.
🚀 Patience & discipline are key—wait for confirmation before entering! 📊
The CHF/USD (Swiss Franc vs. U.S. Dollar) 1-hour timeframe chart reveals a classic Triple Bottom pattern, which is a well-known bullish reversal signal. This pattern indicates that sellers have attempted to break the support level three times but failed, suggesting a potential shift in momentum from bearish to bullish.
Traders closely watch this structure as it often leads to a strong upward breakout once key resistance levels are breached. The current setup provides an excellent risk-to-reward trading opportunity, especially for those looking to capitalize on the breakout.
📊 Key Levels in the CHF/USD Chart
1️⃣ Support and Resistance Zones
🟢 Support Level (~1.1300 - 1.1280 Zone)
This zone has been tested three times, confirming strong buying interest at this price level.
The formation of long wicks on candlesticks signals strong demand and buyer dominance.
A breakdown below this level would invalidate the bullish setup and may indicate a continuation of the bearish trend.
🔴 Resistance Level (~1.1415 - 1.1430 Zone)
This level acts as a price ceiling, where previous bullish attempts were rejected.
A break and retest above this zone would confirm the Triple Bottom breakout.
🎯 Target Level (~1.1457 Zone)
The projected target is based on the height of the pattern, which is measured and added to the breakout point.
This level aligns with previous price action zones and acts as a natural take-profit area for traders.
🚨 Stop-Loss Level (~1.1243 Zone)
A stop-loss is placed below the support zone to protect against false breakouts or an invalidation of the pattern.
📉 Understanding the Triple Bottom Pattern
The Triple Bottom is a strong bullish reversal formation that occurs at the end of a downtrend. It signals that sellers are exhausted, and buyers are gradually taking control.
🔹 Breakdown of the Triple Bottom Formation
✅ Bottom 1 (First Low)
The first bottom forms when the price hits the support level and bounces back.
Sellers are still active, so price declines again to test the same support zone.
✅ Bottom 2 (Second Low - Confirmation of Support)
The second test of the support zone validates the demand area.
Buyers step in again, pushing the price upward.
The market still lacks enough momentum for a breakout, leading to a third retest.
✅ Bottom 3 (Final Low and Strong Rejection)
The third bottom is crucial because it signals the last test of support before a breakout.
The failure to break lower creates a higher probability of an upside move.
📌 Breakout Confirmation & Price Action Signals
🔵 The breakout is confirmed when:
The price closes above the resistance zone (1.1415 - 1.1430) with strong momentum.
Volume spikes during the breakout, indicating institutional buying interest.
A successful retest of the resistance zone as new support further validates the trend reversal.
If the breakout lacks volume or gets rejected, traders should be cautious of a fakeout or potential retracement.
📈 Trading Strategy & Execution Plan
🔹 Conservative Entry (Safe Approach)
Enter after a confirmed breakout above 1.1415, ensuring a strong candle close above resistance.
Look for a retest of the breakout level before entering the trade.
🔹 Aggressive Entry (Early Positioning)
Enter near the third bottom (~1.1300 - 1.1320) with a tight stop-loss.
Higher risk but better reward if the price moves upward without retesting.
🔹 Stop-Loss Placement
Conservative traders: Place the stop-loss below the support zone (~1.1243).
Aggressive traders: Place a tight stop below the recent swing low for better risk management.
📌 Profit Target Projection
Take Profit Target: 1.1457, based on the height of the pattern.
📌 Risk-to-Reward Ratio
Risk: ~60 pips (from entry to stop-loss).
Reward: ~150 pips (from entry to target).
Risk-to-Reward Ratio: 1:3, making it a high-probability trade.
📡 Additional Confirmation Indicators for Stronger Trade Setup
📊 1. Volume Analysis
A spike in volume at the breakout level suggests strong buyer interest.
Low volume on the breakout may indicate a potential fakeout.
📈 2. RSI (Relative Strength Index) Confirmation
RSI should be above 50 and trending upward to confirm bullish momentum.
If RSI is overbought (>70), watch for a pullback before entering the trade.
📉 3. Moving Averages Support
If the 50-period or 200-period moving average supports the breakout level, it adds extra confirmation.
A moving average crossover may further validate the trend reversal.
🔍 4. Beware of Fake Breakouts
If the price briefly moves above resistance but fails to hold, it may be a bull trap.
Always wait for a candle close above resistance and a potential retest before confirming the entry.
🛠️ Alternative Scenarios & Market Risks
🔺 Bullish Scenario (Breakout & Rally to Target)
Price breaks above 1.1415, confirming a trend reversal.
A retest of resistance as support gives additional buying confidence.
Price reaches 1.1457 target before facing new resistance.
🔻 Bearish Scenario (Fakeout & Breakdown Below Support)
Price fails to hold above resistance and falls back below support.
A breakdown below 1.1243 invalidates the pattern, triggering a bearish continuation.
Traders should cut losses quickly if the setup is invalidated.
⚠️ Fundamental Risks to Watch
U.S. Dollar news events (FOMC, NFP, CPI reports) can increase volatility.
Swiss economic data may impact CHF strength.
Unexpected geopolitical events can influence currency movements.
🔎 Summary of the Trading Plan
📌 Trading Strategy Checklist
✅ Pattern: Triple Bottom (Bullish Reversal).
✅ Entry Strategy: Buy after breakout confirmation above 1.1415.
✅ Take Profit Target: 1.1457.
✅ Stop-Loss Level: Below 1.1243.
✅ Risk-to-Reward Ratio: 1:3 (High-Profit Potential with Proper Risk Management).
💡 Final Thought:
This setup provides a high-probability bullish trade with strong technical confluence. However, always remain cautious of market news, economic reports, and sudden volatility that could influence price action.
🚀 Patience & discipline are key—wait for confirmation before entering! 📊
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Related publications
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.
💰FREE GOLD signals in Telegram:
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
Related publications
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.