USDCHF - Divergence - Heikin Ashi - Long

1. Market Analysis:

Asset: USDCHF
Timeframe: 1-hour
Pattern: Bullish divergence identified
Candle Type: Heikin Ashi
2. Entry Criteria:

Divergence Confirmation: Identify bullish divergence on the 1-hour timeframe using indicators like RSI or MACD. Bullish divergence occurs when the price forms lower lows, but the indicator forms higher lows.
Heikin Ashi Confirmation: Look for the formation of the first green Heikin Ashi candle after the bullish divergence is identified, indicating a potential reversal and trend change to the upside.
3. Trade Setup:

Entry Point: Place a buy order at the close of the first green Heikin Ashi candle that confirms the bullish reversal.

Stop-Loss: Set the stop-loss order below the low of the most recent swing low or below the low of the green Heikin Ashi candle that confirms the reversal. This helps limit potential losses if the price reverses.

Take-Profit: Determine your take-profit target based on a risk-reward ratio of either 1:1 or 1:2.
Technical IndicatorsTrend Analysis

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