The proposed USDCHF trade idea presents a logical technical setup, but several factors should be considered before confirmation:
### *Technical Rationale*
1. *Bollinger Bands*: The bounce from the lower band suggests potential oversold conditions, but confirmation above 0.8820 (likely a key resistance-turned-support) is critical to validate bullish momentum.
2. *Stochastic Oscillator*: Exiting oversold signals weakening downward momentum, though this alone isn’t sufficient—watch for a bullish crossover (e.g., %K > %D).
3. *Support Level*: The "critical support" likely aligns with recent swing lows or a psychological level. A strong bounce here adds credibility.
### *Key Considerations*
- *Trend Context*:
- If USDCHF is in a broader downtrend (e.g., driven by CHF strength or USD weakness), this bounce may be a short-lived retracement.
- A break above 0.8820 could signal a near-term reversal, especially if paired with rising volume and bullish candlestick patterns (e.g., engulfing bars).
- *Confluence*:
- Look for alignment with RSI (>50), MACD histogram turning positive, or momentum divergences.
- Monitor risk sentiment—CHF often strengthens during market turmoil, which could cap gains.
### *Risk Management*
- *Entry/Stop*:
- A conservative stop loss (e.g., below 0.8880) limits risk to ~300 pips.
- Ensure a risk-reward ratio ≥ 1:2 (targets at 800/1300 pips).
- *Confirmation*:
- Wait for a close above 0.8820 with strong bullish follow-through to avoid false breaks.
### *Conclusion*
The setup is plausible *if*:
- Price consolidates above 0.8820 with bullish confirmation signals.
- The broader market context (e.g., USD momentum, risk sentiment) supports upside.
*Verdict*: Cautiously agree, but traders should wait for clear confirmation and manage risk tightly. 👍 with disciplined execution.
### *Technical Rationale*
1. *Bollinger Bands*: The bounce from the lower band suggests potential oversold conditions, but confirmation above 0.8820 (likely a key resistance-turned-support) is critical to validate bullish momentum.
2. *Stochastic Oscillator*: Exiting oversold signals weakening downward momentum, though this alone isn’t sufficient—watch for a bullish crossover (e.g., %K > %D).
3. *Support Level*: The "critical support" likely aligns with recent swing lows or a psychological level. A strong bounce here adds credibility.
### *Key Considerations*
- *Trend Context*:
- If USDCHF is in a broader downtrend (e.g., driven by CHF strength or USD weakness), this bounce may be a short-lived retracement.
- A break above 0.8820 could signal a near-term reversal, especially if paired with rising volume and bullish candlestick patterns (e.g., engulfing bars).
- *Confluence*:
- Look for alignment with RSI (>50), MACD histogram turning positive, or momentum divergences.
- Monitor risk sentiment—CHF often strengthens during market turmoil, which could cap gains.
### *Risk Management*
- *Entry/Stop*:
- A conservative stop loss (e.g., below 0.8880) limits risk to ~300 pips.
- Ensure a risk-reward ratio ≥ 1:2 (targets at 800/1300 pips).
- *Confirmation*:
- Wait for a close above 0.8820 with strong bullish follow-through to avoid false breaks.
### *Conclusion*
The setup is plausible *if*:
- Price consolidates above 0.8820 with bullish confirmation signals.
- The broader market context (e.g., USD momentum, risk sentiment) supports upside.
*Verdict*: Cautiously agree, but traders should wait for clear confirmation and manage risk tightly. 👍 with disciplined execution.
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USDCHF touch 0.88404 profit runing 230 pips keep hold in buy posotion
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Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
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Gold Signal's with proper TP & SL for high profit opportunities..
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📲 Join telegram channel free ..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
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.