Currency
by Seth Parker on November 14, 2018

CADCHF Analysis – Inception

Second instrument of the day is the CADCHF, which is a minor pair and will be analysed on our portal for the first time in history. Situation here is very interesting and we are awaiting for a major movement. As for now, it is rather quiet but the big volatility should come here eventually.

Setup here reminds me of the movie ‘Inception’ . So we have a large symmetric triangle pattern (black) and inside of that, we have a smaller one (red lines). Currently, the price is on the lower line of this pattern and I have to say that the selling pressure is rising. For the proper sell signal, we need to see the breakout of the combination of a purple (horizontal) and a red (dynamic) supports.

cadchf chart

Price closing a day, below the purple area will be a legitimate signal to go short. On the other hand, the bounce and the breakout of the upper line, will be a strong buy signal. Somehow I think that the first option is more probable and I will be more preparing for that scenario.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

More content by Seth Parker

Comments (0 comment(s))