In this article, we are drawing Pitchfork channels on EURCHF
On the monthly EURCHF chart, we can see that the pair has been rejected by the channel top and the 200 SMA 1.1700 level. This rejection could not mean a downside continuation because we didn’t have a test of the downtrend channel line 1.2000 level.
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
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We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. On the daily chart, there is a new clear uptrend Pitchfork channel and a bounce off the 1.1394 level is needed for an upside continuation into the 1.1569 level the half of the first side of the channel. You can enter a good risk to reward long trade entry with the stop loss below the 1.1375 level, targeting 1.1440 level higher. Invalidation of this upside swing will come only on a daily close below the 1.1370 level. In that case look for the short trade entries targeting 1.1250 level.