OK what's going on everybody! I just wanted to come on here on this blessed and abundant Sunday and post this future reversal setup I see potentially here on USDCHF. Now of course this is all speculation, I'm just basing this off of experience and what I have seen price action do in the past. So ALWAYS make sure its a confirmation for what you're already potentially seeing or thinking! But wanted to share so let's dive in!
OK so the biggest reason I had seen this setup on USDCHF was due to the fact that USDCHF is very overextended to the downside, now sitting at a significant multi-year level of support. In trading and in the markets, think of these levels as levels that business occurs from, because IT DOES. All this extra jargon you see on Youtube is just confusing and non sense and will never actually help your trading at the retail level especially. BUSINESS HAPPENS IN THE MARKETS AT MAJOR LEVELS. Think about it. Levels are psychological. I know you hear that a lot. But think about what that means. These levels are remembered through time, that is why they have reactions from these significant zones, people remember them. Price is either expensive or it's cheap. In this case USD is a pretty good deal against the CHF at the moment. OK now that I've ranted, let's go into the technical, the simple part.
So looking at this chart I can see price action is really overextended. Sellers are starting to weaken and even on the lower TF we can see that the hourly timeframes are already turning bullish. But when looking at price, from what I've seen, usually the previous trend controller, whether buyer or seller, will attempt to drive price down one last time (a lot of times a lot of retail guys get trapped in sells) then price will drive up in the opposite direction. So I am waiting to see a weak seller push to the downside attempting to make new lows, see some divergence in price lows which would show me the volume doesn't line up with price, and look for the buyers to pop price back up above lows. THIS would set up a nice reversal opportunity.
**A LITTLE EXTRA TIP; IF PRICE POPS BACK UP ABOVE LOWS; LOOK FOR A FAILURE FOR PRICE TO MAKE A NEW LOW AFTER BEFORE ENTERING LONG TRADES
OK so there it is! Future potential long reversal setup here on USDCHF. Seems to be at a good discount! Hope this helps guys!
Cheers!
OK so the biggest reason I had seen this setup on USDCHF was due to the fact that USDCHF is very overextended to the downside, now sitting at a significant multi-year level of support. In trading and in the markets, think of these levels as levels that business occurs from, because IT DOES. All this extra jargon you see on Youtube is just confusing and non sense and will never actually help your trading at the retail level especially. BUSINESS HAPPENS IN THE MARKETS AT MAJOR LEVELS. Think about it. Levels are psychological. I know you hear that a lot. But think about what that means. These levels are remembered through time, that is why they have reactions from these significant zones, people remember them. Price is either expensive or it's cheap. In this case USD is a pretty good deal against the CHF at the moment. OK now that I've ranted, let's go into the technical, the simple part.
So looking at this chart I can see price action is really overextended. Sellers are starting to weaken and even on the lower TF we can see that the hourly timeframes are already turning bullish. But when looking at price, from what I've seen, usually the previous trend controller, whether buyer or seller, will attempt to drive price down one last time (a lot of times a lot of retail guys get trapped in sells) then price will drive up in the opposite direction. So I am waiting to see a weak seller push to the downside attempting to make new lows, see some divergence in price lows which would show me the volume doesn't line up with price, and look for the buyers to pop price back up above lows. THIS would set up a nice reversal opportunity.
**A LITTLE EXTRA TIP; IF PRICE POPS BACK UP ABOVE LOWS; LOOK FOR A FAILURE FOR PRICE TO MAKE A NEW LOW AFTER BEFORE ENTERING LONG TRADES
OK so there it is! Future potential long reversal setup here on USDCHF. Seems to be at a good discount! Hope this helps guys!
Cheers!