On the previous eurchf daily chart we were able to see that price broke the upper resistance of 1.09800.
Therefore we prepare to enter the market long if price provides us with the following information / setup.
We want to see price retrace to the previous area of resistance that turned now into an area of support.
If price retraces to our area then we will be prepared to enter a long position if we have one of the triggers.
- Going long when price forms a double bottom.
- Going long if we receive a 123 pattern – higher high + higher low
- Going long if we get a moving average cross over like for example the 5 and the 8 period moving average.
This recommendation holds true as long as the now support area 1.09800 holds its ground firmly.
We would be trading in direction of the 200 moving average therefore in direction of the major trend on this chart and would on this example trail our stop with the help of the daily PSAR.
It is like this that if a trend developes that we might get the most PIPS out of the market.
Wishing you the BEST OF PIPS I remain at your disposal…