From TradingView · · 1m 10s
USDCHF Channel Reversal Setup
USDCHF breaks neckline, signaling potential short entry near channel support.
In brief
USDCHF breaks neckline, signaling potential short entry near channel support. USDCHF shows bearish divergence and trendline break, suggesting a corrective move toward channel support. Originally reported by TradingView.
USDCHF Bullish Structure
USDCHF maintained strong bullish structure since late January weekly RSI divergence.
Ascending Channel Formation
Price established ascending channel with higher highs and higher lows while respecting support and resistance.
Resistance Confluence
Early October price reached major confluence where channel resistance aligned with weekly resistance area.
Bearish Divergence
USDCHF formed bearish RSI divergence signaling weakening bullish momentum despite higher prices.
Trendline Break
Price broke most recent ascending trendline after bearish divergence, suggesting deeper retracement.
Neckline Break Confirmation
Price broke neckline, retracing into daily fair value gap with bearish heikin ashi candle rejection.
“bearish heikin ashi candle”
Trade Plan 1
Wait for confirmed neckline breakdown on 4-hour chart before entering short position.
Trade Plan 2
Enter short when alligator indicator shows downward movement on 1-hour timeframe.
Invalidation Level
Sustained breakout above weekly resistance and channel resistance invalidates bearish retracement thesis.
In short
USDCHF shows bearish divergence and trendline break, suggesting a corrective move toward channel support.
