Today we combined two of our indicators. The Trend/Wave/Extreme alongside the newest Currency Power indicator and we were able to quickly identify a potential Head and Shoulder Reversal setup on CHFJPY pair.
CHFJPY (H4) SELL
The Currency Power indicator can be used to identify strong currencies (with scores closer to 10) to be sold against weak currencies (with scores closer to 0). Hence we pick the combination of Selling CHFJPY .
- Buy JPY ,high score of 7.3
- Sell CHF ,low score of 4.3After analysing it also using the Trend/Wave/Extreme mini indicator
- The Trend Bar is Red filled pointing Down Trend
- Wave bar is fully loaded Red showing stron Down Momentum
- Extreme bar is barely Oversold so this pair can move much lower
- The chart pattern clearly shows a head and shoulders patterns with a neckline broken initiallyand being tested
- The distance from the head to the neckline is around 70 pips, so a further 70 pip move is possible
Note: Ensure you put a proper a stop loss slightly above the right shoulder if you are planning on buying this pair.
Read about the Trend/Wave/Extreme system here