Trading Analysis

Price Action Analysis For Swing Traders on USD/CHF

August 28, 2019 | 10:57 am | The 5%ers' Blog > Trading Analysis
August 28, 2019 | 10:57 am
The 5%ers' Blog > Trading Analysis
Price Action Analysis For Swing Traders on USD/CHF

Price Compressed Toward the Supply While MACD Show Divergence

As we can see on the M30 time frame chart, from a price action perspective, the USD/CHF pairing climbed up in a way we call Compression.

When a price climbs up in compression it means that the price absorbs and collects all the buy orders on its way up.

This usually indicates a powerless movement.

We can also see a significant fresh supply above which seems like a great level for sell position.

The combination of price compressed towards a fresh supply is a very reliable price action setup for trading.

Still in the M30 time frame, we can see another indication for the weakness of the uptrend which is the MACD divergence.

We can see how the price creates a higher high while the MACD creates a lower high.

I’ll sell at the supply above on the first touch of the price.

The final target for this sell position will be the demand below which we can see on the H1 time frame chart.

This demand is also a fresh demand and therefore is a great level for buy position.

Both opportunities are relevant for swing forex traders.

 

 

 

 

 

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