Sunday 27 May 2012

Time to sell USDCHF?

And so...looking at USDCHF, we have a low test bar closing into a lean and mean level of resistance. The 'brick wall' at 9581 may be a foreboding obstacle in the way of anyone long on this pair currently, however, the reward to risk for us bounce traders certainly stacks up for a short.

If today's Monday's daily bar takes out the low of Friday's bar then this will correlate with the break of the neckline of a double top on the hourly timeframe, coming into the level. Our order placed just below the low of Friday will ensure we will only get triggered into it if there is a convincing break of this hourly neckline/daily low.

Trading the break of the LOW of a LOW TEST coming into such a level is a 'good bet' as the buyers which originally caused the price action to low test no longer there to defend the level. Hurrah!!
 

Orders placed... now time to concentrate on other, more entertaining (albeit somewhat cringe worthy at times) income streams 

Daily: 


Hourly:

 
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3 comments:

  1. James B27 May 2012 at 14:44

    yer i got my order in at .9526 . Its also hitting the R2 of the weekly pivot, although that will most likely change tonight.

    Keep up the good work Rob :)

    ps, your hourly picture is showing the daily bars again :)

    ReplyDelete
  2. Nick D28 May 2012 at 13:18

    Rob, I thought a low-test bar was a bullish sign, not a bearish one?

    ReplyDelete
    Replies
    1. RobColville28 May 2012 at 14:58

      fancy a coaching session at the office? cant really teach you why over this

      Delete

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