GBPCHF Short Term Trend Reversal (Deep Pullback) Strategy

8 nov 2019

STRATEGY: Support and Resistance - Short Term Reversal Strategy
Long Term Trend Time Frame: 1D/4H
Focus Time Frame: 4H


Market Condition

• 1D Short Term: Sideways
  
• 1D Long Term: Uptrend
  

Area of Value (AOV)

• Resistance: 1.2953 - 1.28901
  
• Support: 1.24809 - 1.23807
  

Entry Trigger
4H: Price Rejection / Inside Bar


Entry Price (EP): 1.27482
Stop Loss (SL): 1.28223
Take Profit (TP): 1.24894
RRR: 3.49


Analysis
1D - Looking at 1D TF, we can see that the long term trend shows uptrend (86 days since Aug 11, 2019) and currently consolidating since Oct 17, 2019 (22 days). Current price is respecting 10 EMA which might be broken anytime soon. Once it breaks down, it might find support at 50 EMA on, Previous Resistance turned Support, or at Ascending Trend Line.





4H - Looking at 4H TF, price formed a descending channel which shows trend weakness. If it gets broken, the price may perform a deep pullback at Ascending Trend Line/50 EMA or at Previous Resistance Turned Support at 1D Time frame.







NOTE: This post is for my reference/journal purposes only. Trade at your own risk.