Friday 13 August 2010

$CHF emerging pattern


Here are two charts of $CHF today Friday 13th August.....I am not superstitious but i will not be trading this pattern yet... maybe another 6-8 bars...if the pattern continues to form . The pattern is a possible double head and shoulders and is viable as long as the shoulder doesn't take out the throat/neck of the 'head' but can be above the first left sided shoulder or below it....this information is then combined with the knowledge that a down sloping/angled reaction line sits waiting to the right to exert resistance and downward pressure on price action. Maybe a reverse count could help identify which bar?
If the pattern completes then a simple sell stop order is placed below the shoulders if your indicators back this position up. In this case we have a yellow UMLP that has some nice price interaction and acts as MPL. I would use the 'phyc' level of 1.0500which has already been tested and held but i the trade,will draw the sell stop levels as the pattern continues to develop and gets nearer to the potential trade.
Update 19hrs 39mins Eurotime: pattern is too distorted ( see below) and the RHS shoulder is too high but the result may well be the same ( ie lower price action due to the RL) but it is not trade-able for me.

No comments:

Post a Comment