Dear all,

At the moment we have the eurchf quoted at 1.09047.

Number 2 on the daily chart broke suport, price retraced to the new area of now resistance at the level of 1.10100 / 1.10500 where number 3 is situated.

Number 4 provided us a lower low. Price did what it was supposed to do and retraced to resistance at number 5.

As you may note from the sequence the bearish swings a bigger then the bullish swings.

If price behaves like that then I prefer to only take short trades.

Where will price most likely move to? Well more often then not to the next area of support at number 6.

You may have several options to manage your trade if you are in a trade like this.

It is possible to analyze how many bulls enter the market when price is at support via candle analysis.

Or if you prefer, you may have your target at the next support or you place your trade at breakeven and ride it until price action per se tells you to get out.

By that I mean that a double bottom or a bullish 123 pattern forms against your trade.

You may think about your trade management options and apply what is easier for you.


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.