7 Dimension Analysis For CADCHF for FX:CADCHF by Optimum369

Overview: The monthly and weekly analyses signal a bearish trend, validated by a series of bearish breakouts and consolidations. The focus is now on the daily timeframe for a detailed perspective.

7 Dimension Analysis

Time Frame: Daily

1⃣ Swing Structure: Bearish – 68% probability of further downward movement.

Structure Behavior: Break of Structure (BoS).

Swing Move: Impulsive.

Inducement: Breakout with liquidity sweep indicating continued bearish momentum.

Pull Back 1st: Awaiting confirmation, position holding is crucial.

Internal Structure: Bearish.

Ext OB: Unmitigated.

Support Breakout CIP: Acts as resistance.

Post-Breakout Quality: Clearly favors bears, evident in small consolidation with bearish candle size and multiple wicks.

Traps: Shakeout observed, indicating bearish sentiment.

Time Frame Confluence: Daily.

2⃣ Pattern

CHART PATTERNS

Reversal: Head and shoulders, double top.

Continuation: Bearish flag with a 38% tilt, shakeout continuation with flag consolidation.

Consolidation Rectangle: Small consolidation with shakeout liquidity.

CANDLE PATTERNS

Key Considerations:

Record session count with multiple dojis signals change in guard.

Long wick bearish closing indicates rejection from multiple wicks and doji area.

Momentum signals include strict engulfing.

3⃣ Volume:

High volume on the breakout confirms its validity.

4⃣ Momentum RSI:

Momentum is in a super bearish zone.

Range shift is evident with proper bearish indications.

Divergence: Hidden bearish divergence observed at the start of the move.

Loud moves: Momentum shifted from sideways to bearish with a loud move.

Grandfather-father-son entries indicate a strong bearish setup.

5⃣ Volatility Bollinger Bands:

Middle band rejection at the middle band.

Squeeze starting indicates potential consolidation for volatility compression, followed by a wild bearish move.

6⃣ Strength According to ROC:

ROC values: CAD 0.37 vs CHF 1.31, indicating CHF is much stronger.

7⃣ Sentiment: All market parameters and top-down analysis indicate that CAD is under substantial pressure against CHF. The sentiment suggests looking for sell opportunities.

Entry Time Frame: Daily

Entry TF Structure: Bearish

Current Move: Impulsive

Support/Resistance Base: Bearish post buildup.

Candles Behavior: Bearish long wicks, bearish momentum.

Decision: Sell at open.

Entry: 0.6443

Stop Loss: 0.6505

Take Profit: 0.6118

2nd Exit if Internal Structure Changes, 3rd Trendline Breakout, FOMO.

Risk to Reward Ratio: 1:4.5

Expected Duration: 30 days

SUMMARY: The analysis strongly supports a bearish continuation setup, aligning with the monthly and weekly bearish trends. Key indicators such as candle patterns, volume considerations, and momentum signals reinforce the sell decision. The strategy involves clear risk management and exit criteria.