What’s the CHF up to now??
Good Morning Dynamic Traders
Half way through the week now, and I hope your catching lots of profits.
The CHF has been moving a lot over the last couple of days, which is a clear sign of price oscillation. This generally isn’t the best time to enter a trade if you are a long term trader as the market is very noisy. This is why I have been posting updates on a 4hr chart, because I am able to break down price movement easier and try to explain why price is behaving the way it is. However if you are a short term trader your going to be having a really exciting and possibly stressful time with the CHF.
Yesterday I mentioned that the RN 1.0800 was having a slowing effect on price, I also mentioned that this didn’t mean price would reverse at this area but anything is possible. Well if you look at the 4hr chart below you will see that price did indeed reverse, and in a big way.
I left you with a couple of questions yesterday, the last question I asked was
“if price does decide to reverse what signs should we be looking out for?”
There are a few answers for this question and I will go through some of them now. I had already given you one of the signs which was price. You will notice that we have short term MACD convergence, with a buy signal. Stochastics was also providing us a buy signal after it fell below the under sold level, and the RSI was also showing signs of a reversal. Another sign that I used miss in my very early days was the shape of the candlestick itself!
The second question I asked was “If price does continue to fall, how far will it drop?” I won’t go into too much detail here, but one of the main tools here is your Support/Resistance lines and key pivots.
The reason why I finished my update yesterday asking what should you be looking for if price reverses and how far will price drop if it continues to fall, was to demonstrate that we can’t predict what price is going to do, but we can try and prepare ourselves for whatever price does!
I look forward to tomorrow, to see what the CHF does next!
Happy Trading
Richard Monnery
Half way through the week now, and I hope your catching lots of profits.
The CHF has been moving a lot over the last couple of days, which is a clear sign of price oscillation. This generally isn’t the best time to enter a trade if you are a long term trader as the market is very noisy. This is why I have been posting updates on a 4hr chart, because I am able to break down price movement easier and try to explain why price is behaving the way it is. However if you are a short term trader your going to be having a really exciting and possibly stressful time with the CHF.
Yesterday I mentioned that the RN 1.0800 was having a slowing effect on price, I also mentioned that this didn’t mean price would reverse at this area but anything is possible. Well if you look at the 4hr chart below you will see that price did indeed reverse, and in a big way.
I left you with a couple of questions yesterday, the last question I asked was
“if price does decide to reverse what signs should we be looking out for?”
There are a few answers for this question and I will go through some of them now. I had already given you one of the signs which was price. You will notice that we have short term MACD convergence, with a buy signal. Stochastics was also providing us a buy signal after it fell below the under sold level, and the RSI was also showing signs of a reversal. Another sign that I used miss in my very early days was the shape of the candlestick itself!
The second question I asked was “If price does continue to fall, how far will it drop?” I won’t go into too much detail here, but one of the main tools here is your Support/Resistance lines and key pivots.
The reason why I finished my update yesterday asking what should you be looking for if price reverses and how far will price drop if it continues to fall, was to demonstrate that we can’t predict what price is going to do, but we can try and prepare ourselves for whatever price does!
I look forward to tomorrow, to see what the CHF does next!
Happy Trading
Richard Monnery
Labels: CHF
posted by Richard Monnery @ 12:02
<< Back