More price action on the Swissy
Good Morning Dynamic traders, hope your all enjoying the sunshine!
Yesterday I gave you the answers to the two questions from Tuesday’s update! Today I would like to focus a little more on the question in regards to how far will price drop.
From the 4hour chart below you can see that price dropped 150pips roughly after I posted my update. With price falling my question of how far will it drop became very relevant. I said yesterday that we should be looking at our S/R lines. You can see in the chart below I have marked out two S/R lines that had a key part in changing the direction of price. You will notice that these S/R lines are in close proximity to a RN, and they have both been used previously.
Hopefully you can see the simplicity of using Support and Resistance lines and how they can really aid you in managing your trades. However if you don’t have the confidence in using just S/R lines, look at what the other indicators are saying. In this chart you can see that the RSI changed direction and was showing signs of price getting stronger.
As always we are left asking ourselves what will happen next? As we aren’t predict the future, I suggest we prepare ourselves for every scenario, so that we are always ready to catch any potential profits.
Happy Trading
Richard Monnery
Yesterday I gave you the answers to the two questions from Tuesday’s update! Today I would like to focus a little more on the question in regards to how far will price drop.
From the 4hour chart below you can see that price dropped 150pips roughly after I posted my update. With price falling my question of how far will it drop became very relevant. I said yesterday that we should be looking at our S/R lines. You can see in the chart below I have marked out two S/R lines that had a key part in changing the direction of price. You will notice that these S/R lines are in close proximity to a RN, and they have both been used previously.
Hopefully you can see the simplicity of using Support and Resistance lines and how they can really aid you in managing your trades. However if you don’t have the confidence in using just S/R lines, look at what the other indicators are saying. In this chart you can see that the RSI changed direction and was showing signs of price getting stronger.
As always we are left asking ourselves what will happen next? As we aren’t predict the future, I suggest we prepare ourselves for every scenario, so that we are always ready to catch any potential profits.
Happy Trading
Richard Monnery
Labels: CHF
posted by Richard Monnery @ 12:08
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