I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Sell USD/CHF
This pair is trading right at its 200 SMA which many traders look at as a major support/resistance area. I also see a tweezer top and yesterday's candle ain't lookin' too bullish. Is this a short-term top?
The 4-hour chart agrees with my bearish bias. There's bearish divergence where price has formed flat highs while the oscillator has been steadily falling = bulls are weakening.
I'm going to sell at 2300. My stop loss (SL) will be 2340. My initial profit target (PT) will be 2200. Depending on price action as it nears the 2200 handle, I may decide to target 2150 instead, but will take a wait-and-see approach.
Sell USD/CHF @ 1.2300 | SL: 1.2340 | PT: 1.2200
