EURCHF decelerating at Resistance
Hello guys, this is my first published Idea.
This is one of my favorite setups, a double top with deceleration at strong resistance. The EUR gained strength against the CHF however it seems that the bears will soon begin taking over.
Looking at the higher timeframes such as the weekly and monthly, price is still overall bearish. Keep in mind that the recent bullish trend we've seen on the daily is just a pullback on the monthly.
Price has now come to retest the 1.15 level which also coincides with the weekly 0.618 fibonacci retracement level. Adding to our confluence stack price is also decelerating, formed a hightest and furthermore we have massive bearish MACD divergence. This is enough confluence for me to short this pair up to next support. I would advise to protect your stop above recent price action.
Only trade up to 1.5% of your account per trade.
Happy trading!
This is one of my favorite setups, a double top with deceleration at strong resistance. The EUR gained strength against the CHF however it seems that the bears will soon begin taking over.
Looking at the higher timeframes such as the weekly and monthly, price is still overall bearish. Keep in mind that the recent bullish trend we've seen on the daily is just a pullback on the monthly.
Price has now come to retest the 1.15 level which also coincides with the weekly 0.618 fibonacci retracement level. Adding to our confluence stack price is also decelerating, formed a hightest and furthermore we have massive bearish MACD divergence. This is enough confluence for me to short this pair up to next support. I would advise to protect your stop above recent price action.
Only trade up to 1.5% of your account per trade.
Happy trading!
Note
Market might be closing with a bullish bar. This doesn't negate the setup, however this is the reason why I mostly put my entry below recent price action. In cases such as this, I'm making sure that I will get in with a strong move in my desired direction.The market will tell us how to react in the next days. Remember guys, trade what you see not what you think. If the market signals us furthermore that a bearish run might be ahead I will still short. For that I would now need a strong rejection of the resistance level and bearish intraday price action.
However we also might get a bullish breakout, if so I will try to get in at the pullback at either the 1.15 level or at a bullish 0.618 fib rejection.
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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.
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.