Trade Idea: USDCHF Breaks Ascending Triangle In Momentum
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: USDCHF Momentum Breakout of a Ascending triangle technical price pattern
All charts I provide are of the Daily time frame unless stated otherwise.
Trend: Very Bullish
Key Levels: Broken resistance 1.0109 with expecting this to hold as a new support.
Price Action Signal: Awaiting a retest of the broken key level for a price action signal
Chart Notes: The USDCHF pair broke out in momentum at the resistance level of 1.0109 a week ago.
With a strong bullish bias that remains intact and currently since has been slowly retracing back to test this level from above.
Potential Trade Idea:
I am considering buying this pair again if the broken key level of 1.0109 now holds as a new support.
I will be looking for a strong bounce of this key level with a nice bullish reversal candlestick pattern.
As you will notice from the chart below, the USDCHF had been in a long time bullish ascending triangle, with a large momentum breakout.
This setup has plenty of free space, giving the trade idea room to head higher for a very good risk to reward.
With a first potential target being the last daily highs. Should give me at least a 1-1 first target.
If you look closely at the chart, you will notice the bullish response that happened only four days ago.
But when this rejection occurred price had not yet moved low enough back into the structure level.
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 bullish move with this pair? Just leave any question or comments below.