USDCHF Short - Stong Set up - 61.8 is the Number - And 2 for 1!
This is on the 1h chart, to show you the strength of this entry point. Looks like 61.8 is the retracement number for this move. On the daily chart it has just retraced 61.8 as well. Anytime you see a similar pattern repeat and end at same FIB number in two different time frames, at a key s/r level, that is a great potential reversal.
For the Elliot folks, the pattern doesn't get much clearer. Candlestick guys will love the engulfing appearing at the resistance area and having confluence with a morning star on the daily chart. Harmonic traders see a nice potential AB=CD ready to complete. So Nison, Elliot, and Carney all agree!
Here's the best part. The stop can be placed just above wave 1 termination point....about 15 pips. Elliot rule says wave 4 cannot go into wave 1 territory, so if price does retrace, and price has tested this are multiple times before. For targets it looks great, as the previous low is 61.8%, and guess what? A little better than 1:1 r/r. Target 2 is the point at which AB=CD, and is the 1.618 fib extension.
Highly likely price will revers here, so take your profits and watch for your reversal signals to long!
For the Elliot folks, the pattern doesn't get much clearer. Candlestick guys will love the engulfing appearing at the resistance area and having confluence with a morning star on the daily chart. Harmonic traders see a nice potential AB=CD ready to complete. So Nison, Elliot, and Carney all agree!
Here's the best part. The stop can be placed just above wave 1 termination point....about 15 pips. Elliot rule says wave 4 cannot go into wave 1 territory, so if price does retrace, and price has tested this are multiple times before. For targets it looks great, as the previous low is 61.8%, and guess what? A little better than 1:1 r/r. Target 2 is the point at which AB=CD, and is the 1.618 fib extension.
Highly likely price will revers here, so take your profits and watch for your reversal signals to long!
Trade geschlossen: Stop wurde erreicht:
Well, stopped out for -20 pips as it never reached 1st target, that's the bad news. The good news is we got long after the three rising soldiers completed and rode forecasted wave A for 93 pips closing it with the completion of the dark cloud.
So we are a net 73 pips. Also, it looks like wave b may have completed and we are ready to move back up again as a hammer completed yesterday....wait for bullish confirmation.
So we are a net 73 pips. Also, it looks like wave b may have completed and we are ready to move back up again as a hammer completed yesterday....wait for bullish confirmation.