Trade Idea: The Bears Turn Up On The CADCHF with a two candle reversal
Important note on charts:
It’s imperative to your trading success, you are trading with a broker that offers “New York Close Forex Charts” where each daily candle opens and closes at 5 pm EST. This is essential with trading price action correctly.
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All my trade setups provided, is not advice or a recommendation to trade or invest. It is solely for educational and general information only.
Don’t blindly buy or sell the Forex markets discussed in this trade setup. Do your own research and always be aware of the risks and rewards.
Potential Trade Setup: The Bears Turn Up On The CADCHF With A Two Candle Reversal
All charts I provide are of the Daily time frame unless stated otherwise.
Trend: Very Bearish
Key Levels: Broken support 0.7528 with now holding as a new resistance. The 0.7395 for a final target potential on this pair.
Price Action Signal: A bearish two candle reversal price pattern
Chart Notes: The CADCHF broke the support level 0.7528 with a large breakout candle. Has now retraced back to test this level from below.
With a strong bearish bias now with this pair, gives a good possibility to drop.
Potential Trade Idea:
I am considering selling this pair at the break of the bearish two candle reversal signal.
As you will notice from the chart below, the CADCHF had been in a bullish trend and recently changed to a bias bearish.
Overall this pair is still in a larger sideways market.
This setup has plenty of free space, giving the trade idea room to head lower for a good risk to reward.
With a first potential target being the last daily highs. Should give me at least a 1-1 first target.
A second target aiming at the bottom of the channel and previous structure Daily lows.
I can’t stress enough here, that patient and discipline is the key to any successful trader.
Now is your turn:
How are you planning this setup? What are you looking for to catch the next bearish move with this pair? Just leave any question or comments below.