The descending triangle pattern on H4 chart of CHF/JPY provides an opportunity for a bearish breakout. The pattern's borders are marked with the yellow lines. My potential entry level - the cyan line. My potential exit level - the green line. Stop-loss is to be set to the low of the breakout bar (not shown).
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A descending triangle has just formed hinting for a continuation of that bearish trend. According to fundamentals the swiss franc is facing a very weak period with surprisingly low retail sales data, compared to japanese yen benefiting from a positive balance of payments. Price should target the first meaningful support level around 115.50.
SGDJPY broke major support line in daily time frame, so support becomes resistance, I think this pair is now on pullback mode, after major support breakout, and projection of D point is just in resistance zone.
Here is a corrective structure that could be called a bull flag,
This bull flag could be over, or not, thats why i have 2 alternatives, the channel, and the line. So there is a possibility of price going down to the channel for wave c.
In any case, i will be interested in buying only when it breaks out of this channel, or goes beyond the end of wave B
I am writing a blog post to give more details to the attenders of my last Private Webinar on http://profiting.me, to explain how to identify the main trend and take advantage from it. To make this I just used CHFJPY as example.
This image explain very well the importance to have clear the main trend and what is prevailing in the market.
In this scenario the...
Two visible Bearish AB=CD and Alt Shark patterns have completed at the top area of the channel and thus we think the upward correction is near completion, if not completed already. Break down of the support at 124.211 is a clear signal that the bear are in charge again.
Good luck,
Cyclical Waves Group
Interesting developments in this pair, unlike SGDJPY, seems like the uptrend can resume from here.
Price found support at a strong level from the previous uptrend, and came down forming 7 waves, an ABCXABC correction.
If we see a move off this consolidation, which is strong enough, I'll try to go long asap.
Good luck!
Ivan.
Hello traders, here we have a possible abcd pattern with completion at the 1.27 extension which is also a previous fresh supply level. also there is some fib confluence around that level. Targets and stops as shown in the chart.
cheers
Price to bear flag form completed 50% level test, and the price to break through the edge of flag.But does not exclude the possibility to rise again, so I prepared two selling zone.
1) Sitting at a previous structure/ demand
2) Price formed a falling wedge with the target above at the resistance which also a supply level on smaller timeframes
3)target is a 38.2 percent fib retracement level
4)Sitting ideally between the two trendlines that we are targetting
5) heavily oversold on stoch.
Confluences:
1/ with the recent formed downtrend
2/ Broke TL + retest
3/ Tested the 130.000 weekly resistance
4/ Bounced of the 50% fib.
5/ high test, followed by inside bar set up, followed by another high test
6/ 50 & 60 EMA's bounce
