USD/CHF Intraday Trend Transition
Trading any chart pattern without considering the underlying trend is simply not effective. Autochartist addresses this with the Initial Trend indicator (C). It is one of the three indicators which, when looked at together give the overall quality of the chart pattern. However, do not mistakenly believe that the Initial Trend should always be high. It all depends upon the chart pattern type: trending versus non-trending.
The downtrend (D) was the market cycle that the Continuation Falling Wedge chart pattern developed within. The current trend is transitioning to a more sideways angle (E).
With the potential stall in the market it's less likely that the support line (A) will be broken. The resistance line (B) probably would rather be pierced. The Initial Trend (C) is not low enough to indicate no trend but is indicating a shift to a sideways market. This is the best confirmation for the downtrend line breakout.
For further information on this and other chart patterns visit www.autochartist.com
The downtrend (D) was the market cycle that the Continuation Falling Wedge chart pattern developed within. The current trend is transitioning to a more sideways angle (E).
With the potential stall in the market it's less likely that the support line (A) will be broken. The resistance line (B) probably would rather be pierced. The Initial Trend (C) is not low enough to indicate no trend but is indicating a shift to a sideways market. This is the best confirmation for the downtrend line breakout.
For further information on this and other chart patterns visit www.autochartist.com
- 7 October |
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