Analysis: Double Bottom | USD\CHF

Submitted by ChartSecret.com on Tue, 07/14/2009 - 07:39
in

Double Bottom Chart Pattern at USD\CAD

A Double Bottom chart pattern in the making in the USD\CHF currency pair - 30 pips in size. Two Bottoms are right on Support level of 1.1500, and neckline has been tested for 3 times which enforces its use as a neckline.

Bollinger Bands also agree with the trade as the Moving Average is flat and signals a period of Range and weakening of prevailing trend. Candlesticks at the 2nd bottom also show weakening of sellers as the candles bodies are small and their low and high are distant. This indicates that sellers did not succeed in moving the price, as they were faced with strong buyers.

Trading
Aggressive Traders - Wait until Candlestick Formation confirms bounce of price of 1.1500 level.
Conservative Traders - Wait for breakout and pullback to the neckline at 1.1530.


In order not to miss future analysis and trades, I suggest you subscribe to updates here:
Subscribe To Updates