CHFNZD trade ideas
NZD/CHFBearish Divergence
Bearish divergence is a technical analysis concept indicating potential downward momentum in an asset's price, suggesting that the current uptrend may be weakening. It occurs when the price of an asset reaches higher highs, but an indicator (such as the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), or Stochastic Oscillator) forms lower highs. This divergence between the price and the indicator signals that the bullish momentum is fading, and a reversal to the downside may be imminent.
Key Points of Bearish Divergence
1. **Higher Highs in Price**: The asset's price continues to climb, forming higher highs.
2. **Lower Highs in Indicator**: The chosen technical indicator fails to match the higher highs in price and instead forms lower highs.
3. **Potential Reversal Signal**: This discrepancy suggests that the bullish momentum is weakening, potentially leading to a reversal or a significant pullback.
Common Indicators Used for Identifying Bearish Divergence
1. **Relative Strength Index (RSI)**: A momentum oscillator that measures the speed and change of price movements. Bearish divergence occurs when the price makes a higher high, but the RSI forms a lower high.
2. **Moving Average Convergence Divergence (MACD)**: A trend-following momentum indicator that shows the relationship between two moving averages of a securityโs price. Bearish divergence is seen when the price makes higher highs while the MACD line forms lower highs.
3. **Stochastic Oscillator**: A momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period. Bearish divergence occurs when the price reaches higher highs, but the stochastic oscillator forms lower highs.
Trading Strategy
1. **Identify Divergence**: Look for higher highs in the price chart and lower highs in the chosen technical indicator.
2. **Confirmation**: Confirm the bearish divergence with additional technical analysis tools or patterns (e.g., trendlines, candlestick patterns).
3. **Entry Point**: Consider entering a short position when the price starts to reverse direction, confirming the bearish signal.
4. **Stop-Loss**: Place a stop-loss order above the recent high to manage risk.
5. **Target Price**: Set a target price based on key support levels or a predefined risk/reward ratio.
Example
Assume a stock is in an uptrend with the following observations:
- **Price Action**: The stock's price makes a high at $100, pulls back, and then makes a higher high at $105.
- **RSI Indicator**: The RSI reaches 70 at the first high ($100), then only reaches 65 at the second high ($105), forming a lower high.
This scenario indicates bearish divergence:
- **Higher Highs in Price**: $100 to $105.
- **Lower Highs in RSI**: 70 to 65.
Benefits and Risks
**Benefits**:
- **Early Warning**: Provides an early signal of a potential trend reversal.
- **Risk Management**: Helps in setting up trades with clear entry and exit points.
**Risks**:
- **False Signals**: Divergences can sometimes produce false signals, leading to premature trades.
- **Confirmation Needed**: Itโs essential to confirm divergence signals with other technical analysis tools or patterns to reduce the risk of false signals.
Conclusion
Bearish divergence is a valuable tool for traders to identify potential trend reversals. By recognizing higher highs in price and lower highs in a technical indicator, traders can anticipate a weakening uptrend and prepare for a possible downward move. Proper risk management and confirmation with additional analysis are crucial to effectively trade bearish divergence signals.
NZD/CHF BEARS WILL DOMINATE THE MARKET|SHORT
Hello,Friends!
Previous weekโs green candle means that for us the NZD/CHF pair is in the uptrend. And the current movement leg was also up but the resistance line will be hit soon and upper BB band proximity will signal an overbought condition so we will go for a counter-trend short trade with the target being at 0.556.
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DeGRAM | NZDCHF pullback from a psychological levelNZDCHF is trading in an ascending channel between the trend lines.
The chart is under the psychological resistance at 0.56.
The price instantly reacted with a decline after reaching the resistance level and the trend line.
We expect a pullback after the resistance retest.
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Share your opinion in the comments and support the idea with like. Thanks for your support!
NZDCHF Trading Opportunity! BUY!
My dear subscribers,
NZDCHF looks like it will make a good move, and here are the details:
The market is trading on 0.5548 pivot level.
Bias - Bullish
Technical Indicators: Both Super Trend & Pivot HL indicate a highly probable Bullish continuation.
Target - 0.5559
About Used Indicators:
The average true range ATR plays an important role in 'Supertrend' as the indicator uses ATR to calculate its value. The ATR indicator signals the degree of price volatility.
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WISH YOU ALL LUCK
NZDCHF I Impulse correction and potential continuation Welcome back! Let me know your thoughts in the comments!
** NZDCHF Analysis - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
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NZDCHF LongPrice action daytrading
Price is bullish bias on H4 & higher TF. Taking a bullish bias. Price has broken the resistance level.
Going to H1 TF, Price still reacting strongly from the broken resistance level. Trading breakout & retest strategy. Set Long target at the broken level targeting Daily Swing High with a tighter SL for better R:R
Potential bearish drop?NZD/CHF is rising towards a resistance level which is a pullback resistance and could fall to our take profit.
Entry: 0.55902
Why we like it:
There is a pullback resistance level.
Stop loss: 0.56759
Why we like it:
There is a pullback resistance.
Take profit: 0.54882
Why we like it:
There is a pullback support level.
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NZDCHF Technical Analysis and Trade IdeaOn the daily timeframe, the NZDCHF has displayed a strong bullish trend. Our focus is currently on identifying a buying opportunity that aligns with the continuation of this trend. Assuming price action unfolds as analyzed in the video, we anticipate favorable trading conditions. The video covers critical aspects such as trend analysis, price action insights, market structure, and a potential trade setup. As always, exercise prudent risk management when trading, and remember that this information is purely educational and not financial advice. ๐๐
NZDCHF - 8 months ASCENDING TRIANGLEโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
๐คLetโs learn and grow together ๐ค
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Hello Traders โ
After a careful consideration I came to the conclusion that:
- it is crucial to be quick in alerting you with all the opportunities I spot and often I don't post a good pattern because I don't have the opportunity to write down a proper didactical comment;
- since my parameters to identify a Classical Pattern and its scenario are very well defined, many of my comments were and would be redundant;
- the information that I think is important is very simple and can easily be understood just by looking at charts;
For these reasons and hoping to give you a better help, I decided to write comments only when something very specific or interesting shows up, otherwise all the information is shown on the chart.
Thank you all for your support
๐๐๐ ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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โ DISCLAIMER โ
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
Forex Trading + 3 Step Rocket Booster StrategyInside this video, you will see
how powerful the rocket booster strategy is
how to determine an uptrend
then finally how to see a new high in price
watch this video to learn more
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Disclaimer: Trading is risky and you will lose money please do your own research and understand risk management strategies
NZDCHF Short Trade Setup A #short trade opportunity recently presented itself on the #kiwiswissy (#NZDCHF) #trading chart ๐.
This is indicated by the #bearish harami candlestick ๐ฏ๏ธ pattern just below the 0.54948 horizontal resistance level.
This indicates a rejection of the same level, with potential price move in the downward ๐ โฌ๏ธ direction (#sell).
Sufficient downward momentum should see price dumping towards the 0.54000 psychological level and possibly testing the strength of the 0.53978 horizontal support level.
As always, please apply appropriate risk management.
Happy trading!
#crosspair
NZD/CHF BEARISH BIAS RIGHT NOW| SHORT
Hello,Friends!
NZD/CHF uptrend evident from the last 1W green candle makes short trades more risky, but the current set-up targeting 0.546 area still presents a good opportunity for us to sell the pair because the resistance line is nearby and the BB upper band is close which indicates the overbought state of the NZD/CHF pair.
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