Long setup CHFJPY
timeframes used: 4h & daily
After a fast paced HH price made a round correction, almost 50% Fib, which is the "cup" of the cup and handle formation.
This retracement was followed by a higher high, which is untypical for a Cup and handle formation, but it doesn't really matter.
My plan is to go long on the retest of the broken support area and go for a TP about the size of the cups depth. The depth of the cup combined with the 4h key lv equals my TP.
Entry: Combination of OB, support and daily key lv.
Take Profit: depth of cup approximately equals size of bounce, so depth of cup + 4h key = TP
Stop Loss: beneath 4h key support
After a fast paced HH price made a round correction, almost 50% Fib, which is the "cup" of the cup and handle formation.
This retracement was followed by a higher high, which is untypical for a Cup and handle formation, but it doesn't really matter.
My plan is to go long on the retest of the broken support area and go for a TP about the size of the cups depth. The depth of the cup combined with the 4h key lv equals my TP.
Entry: Combination of OB, support and daily key lv.
Take Profit: depth of cup approximately equals size of bounce, so depth of cup + 4h key = TP
Stop Loss: beneath 4h key support
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