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USD/CHF in Month-Long Ascending Channel

November 29, 2015 (Last updated on December 3, 2015) by

USD/CHF has entered a discernible ascending channel in late October this year. The pattern is most visible on 4-hour timeframe. It continues the major rally in the currency pair persistent since October 15. The channel has multiple border confirmations from the price and presents an opportunity to sell the USD vs. the franc if the lower border gives in.

The image shows the channel with its borders as yellow lines. The cyan line is the potential breakout entry point located at 10% of the channel’s height below the lower border. The green line is the take-profit area at 100% of the channel’s height below the border. I will set my stop-loss to the high of the breakout bar or the high of the previous bar if the breakout bar is mostly outside the channel. I will ignore upward breakouts from this channel. You can click on the image to see a full-size chart:

USD/CHF - Ascending Channel Pattern on Daily Chart as of 2015-11-29

I detected this channel using the Channel Pattern Detector indicator and built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/CHF pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2015-12-02 20:10 GMT: An abnormally long bearish candle has pierced the entry line at 17:46 GMT today. My sell opened at 1.02280 with stop-loss at 1.03093 and take-profit at 1.00897. I like the strength of the breakout here. Let’s hope it won’t repeat the fate of USD/JPY ascending channel.

USD/CHF - Ascending Channel Pattern on 4-Hour Chart - Post-Entry Screenshot

Update 2015-12-03 15:20 GMT: An even more abnormally long bearish candle has pierced the take-profit line just some two hours ago. The TP was at 1.01020 at that time but the trade closed with a positive slippage (!) at 1.00972:

USD/CHF - Ascending Channel Pattern on 4-Hour Chart - Post-Exit Screenshot

If you have any questions or comments regarding this ascending channel on USD/CHF chart, please feel free to submit them via the form below.

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