Scanning for chart patterns in real time
Autochartist makes it easier to trade successfully with its tools that automatically identifies chart and Fibonacci patterns.The downtrend on the USD/CHF continues. Downtrends present three possible entry opportunities: continuation, correction, or reversal. Due to the downtrend’s strength it’s very likely that a continuation and/or a correction (also known as a Retracement) will occur. The decision to focus on more selling pressure comes primarily from the Channel Down pattern alert, though also from the seven-bar Autochartist Initial Trend reading that accompanies it. The Initial Trend reading signals that significant bearish momentum remains behind the price action.
The selling pressure at the pattern’s upper line, at 1.0180 (X), presents an opportunity to short sell a rally to this resistance level (which would be considered a Correction or Retracement entry). If price action does not reach this level, but rather sells off sharply to Channel Down support at 1.0035, then a Continuation short sell would trigger. If the bulls are able to gather buying momentum higher through 1.0180, look for potential reversal—however, keep in mind that the duration and strength of the downtrend will likely cause a rally to be sold into between 1.0180 and 1.0200, and even up to 1.0220.
