In the chart, the USD/CHF price has been following a bearish channel, consistently making lower lows and lower highs.
The next opportunity for traders is to wait for the price to pull back to the support level that has become resistance.
With a risk-reward ratio of 3, traders have several strategies available:
A) Wait for the price to pull back and demonstrate a bearish candlestick pattern such as a pinbar, engulfing pattern, inside bar, doji, etc. This approach relies on confirmation from price action signals.
B) Place a limit order at the structural level, anticipating a reversal from that point. This strategy does not wait for confirmation and assumes the price will respect the historical structure.
C) Combine both methods by allocating half of your capital to enter with a limit order at the structure level and the other half upon confirmation of a bearish candlestick pattern. This approach balances confirmation with the potential of an earlier entry.
The next opportunity for traders is to wait for the price to pull back to the support level that has become resistance.
With a risk-reward ratio of 3, traders have several strategies available:
A) Wait for the price to pull back and demonstrate a bearish candlestick pattern such as a pinbar, engulfing pattern, inside bar, doji, etc. This approach relies on confirmation from price action signals.
B) Place a limit order at the structural level, anticipating a reversal from that point. This strategy does not wait for confirmation and assumes the price will respect the historical structure.
C) Combine both methods by allocating half of your capital to enter with a limit order at the structure level and the other half upon confirmation of a bearish candlestick pattern. This approach balances confirmation with the potential of an earlier entry.