GBPCHF had a huge bullish move on the H4 chart. However, the price seems to have broken the bullish Trend line. The pair now looks bearish. Let us have a look at the GBPCHF H4 chart….
GBPCHF Free Forex Trading Signals – 31st Jan 2017
The pair started having a bearish momentum from the level of 1.26400 and produced a huge bearish H4 candle from the level of 1.25350. Then, the price started having correction from the level of 1.24040. So far, the pair has produced two H4 corrective candles and the level of 124.520 has acted as the level of support.
If the level of support produces an H4 reversal candle, then we should look for a breakout at the level of 1.24040 to take short entry. The nearest strong level of support is at 1.23200. That is where we should set our Take profit. This means it gives us 1:2 risk and reward ratio.
Let us have a look at the summary of the trade
- Sell Stop Order: 1.24040
- Stop loss Order: 1.24520
- Take Profit Target: 1.23200
To understand reversal candle, one has to learn Japanese candlestick pattern. There are many reversal candles such as Inside bar, Engulfing bar, Doji, Pin bar. Once a trader understands these patterns and be able to integrate with Support/Resistance, then the idea of taking entries, exit get much easier. There are some excellent articles, videos on Japanese candlestick pattern on the Internet. Study with those and learn them well. If you still have anything else to know about Japanese candlestick pattern, feel free to contact with us. We will be glad to help you out.
Comment below if you have questions on this trade and please let us know if you made money if this trade signal. Good luck!
You can also take a look at our previous (and most likely profitable) Free Forex Trading Signals Here.
We hope that you enjoy our Free Forex Trading Signal today: GBPCHF Free Forex Trading Signals – 31st Jan 2017
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