CHFJPY - Bearish correction into a new bull trend

8 thg 12, 2016

CHFJPY has made an impressive move to reach the 113 level in a short period. However, this pair is due for a correction.

With price rejecting this resistance level and bullish pressure easing over the last couple days, this is likely to be the start of a good sized correction/retracement before price continues higher. The red rectangle depicts the projected retracement area where price is likely to continue upward. This will act as the profit target if a short trade is triggered.

For a valid short setup the following criteria should be met:

• Today's heiken ashi candle should be red and have little to no upper wick.
  
• Price should extend lower than yesterday's low.
  
• AC oscillator should remain red and close less than 0.
  
• The fast Laguerre should break lower (Ideally, it should close below 0.85). *optional but would be a nice confirmation*
  

If these criteria are met, a pending order will be placed a few pips below the new low posted tomorrow. SL should be placed safely above the identified resistance area.

9 thg 12, 2016

Ghi chú

Price moved higher today and has invalidated this setup. Perhaps a price will suggest a new setup next week.

12 thg 12, 2016

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