www.metatradertools.com; loren@metatradertools.com
Attached is the weekly chart of the USD/CHF pair with annotations regarding fib. and RSI analysis.
# 1 shows Fib. lines from A to B retracing to C which shows the downtrend to have medium strength with no candle body above 61.8. We project 80% of A to B added to C for our target price.
#2 shows Fib. lines from A high to B low retracing to C suggesting the down cycle is strong. Price should easily exceed B with target at A to B added to C. It is important that we meet or exceed target expectation for confirmation of down cycle.
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#3 shows Fib lines from A to B, retracing to C at 50.0 level which suggest the down trend has medium strength. Our target is 80% of A to B added to C. A historical RSI reverse negative divergence is noted at 3 C, suggesting lower prices.
#4 shows Fib lines A to B with retracement to C at the 38.2 level suggestive of a strong down cycle. Price target is A to B added to C. Two additional RND are noted in this period.
#5 shows Fib. line from A to B low, retracing to C, 100.0, suggesting the downtrend is very weak and will probably fail.
#6 found at the bottom right hand corner of the chart shows Fib lines from A low to B followed by retracement to the 61.8 level. The up cycle is weak and may not exceed B. An active RSI reverse positive divergence is noted in the 6 C period suggesting higher prices.
#7 shows Fib. lines from the high to low in this time frame. A down cycle is show from a to b with retracement to the 23.6 level which suggest the longest cycle is in a strong downtrend. The 6 C period shows two current H-A consolidation candles which likely suggest trend change. We cannot be sure the retracement in this period is complete and should wait for a confirming H-A candle. If the bulls are in charge as anticipated we should not see prices below the low currently set in the 6 C period. The contemplated trade is long against a strong downtrend and is higher risk.
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