USD/CHF: 2 possible shorts: bat and/or double top...?
Longterm short trade setup:
The Daily chart on the left gives us a possible short setup based on a possible double top which could complete at a possible downsloping trendline and possible dynamic resistance (confluence). Bare in mind that the momentum oscillators are bullish and we could see some further upside! I do think however that this is a good opportunity with very good R/R. 4 initial possible targets are drawn on chart, based on fibonacci and possible completion of the double top. An additional 5th longterm target could be taken (small percentage) in case PA goes to complete a possible bullish pattern (bat or shark). Please note that the bat/shark patterns are only drawn here for illustration purposes and to keep in mind what could be developing after this setup completes.The setup is mainly based on the double top and trendline resistance! I have my sell limit orders ready for entry @ 1.9820.
Short-term short trade setup:
On the 4H chart on the left we might have just completed a bearish bat in a possible S/R zone. 2 trades based on this bat are drawn in the chart. SL will be above X and possible completion of the double top on the daily and also above the longterm trendline. We have currently surpassed the 0.886 retracement of XA (depending on where you draw A, I didn't include the spike...) and PA is hovering around 0.9800.
The fact that we did not get a rejection of that level could point to further upside and possible completion of the double top on the daily so proceed with caution! Also no real bearish signs here on the momentum oscillators which could point to possible further upside. I will enter at market now (0.9800) and will take 80% at TP1 and the rest at TP2.
ADJUST YOUR POSITION SIZE BASED ON THE RESPECTIVE RISK FOR EACH SETUP!!
The Daily chart on the left gives us a possible short setup based on a possible double top which could complete at a possible downsloping trendline and possible dynamic resistance (confluence). Bare in mind that the momentum oscillators are bullish and we could see some further upside! I do think however that this is a good opportunity with very good R/R. 4 initial possible targets are drawn on chart, based on fibonacci and possible completion of the double top. An additional 5th longterm target could be taken (small percentage) in case PA goes to complete a possible bullish pattern (bat or shark). Please note that the bat/shark patterns are only drawn here for illustration purposes and to keep in mind what could be developing after this setup completes.The setup is mainly based on the double top and trendline resistance! I have my sell limit orders ready for entry @ 1.9820.
Short-term short trade setup:
On the 4H chart on the left we might have just completed a bearish bat in a possible S/R zone. 2 trades based on this bat are drawn in the chart. SL will be above X and possible completion of the double top on the daily and also above the longterm trendline. We have currently surpassed the 0.886 retracement of XA (depending on where you draw A, I didn't include the spike...) and PA is hovering around 0.9800.
The fact that we did not get a rejection of that level could point to further upside and possible completion of the double top on the daily so proceed with caution! Also no real bearish signs here on the momentum oscillators which could point to possible further upside. I will enter at market now (0.9800) and will take 80% at TP1 and the rest at TP2.
ADJUST YOUR POSITION SIZE BASED ON THE RESPECTIVE RISK FOR EACH SETUP!!
