USDCHF: Trend Reversal Provides New Sell Opportunity
Updated
What do you think about such a trading idea, which is based on Ichimoku indicator with the optimized settings for the 1H timeframe?
Let's see how the market will act and which results we will get.
The price passed through the cloud and broke the uptrend line. It gives us a trend reversal signal, and as the price is below the cloud, we have the bearish market. It means we have to search for sell opportunities.
We can sell, if the price breaks below 0.98900 support level. Stop orders for sell trades must be placed above the uptrend line and the local swing high. It is 0.99170 level. Profit targets should be placed at 0.98600 and 0.98200 support levels.
Don't forget to use proper risk management. It is very important as not every trade will be profitable.
Let's see how the market will act and which results we will get.
The price passed through the cloud and broke the uptrend line. It gives us a trend reversal signal, and as the price is below the cloud, we have the bearish market. It means we have to search for sell opportunities.
We can sell, if the price breaks below 0.98900 support level. Stop orders for sell trades must be placed above the uptrend line and the local swing high. It is 0.99170 level. Profit targets should be placed at 0.98600 and 0.98200 support levels.
Don't forget to use proper risk management. It is very important as not every trade will be profitable.
Note
How quickly Forex pairs change the direction. That's why we must use stop-loss orders and that's why it is better to use trailing stops.
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