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Introduction
I find it useful to look at the big picture from time to time. In technical analysis terms, that usually means inspection of weekly and/or monthly charts. However, I rarely get to see analysis of "ultra-high" timeframe charts, so I decided to make a couple of attempts of my own. Previously, I analysed long term charts of the Euro, the Yen and the Cable.
Today I'll have a look at yearly and quarterly Swissie charts that are covering the period from 1971 to 2015. While the yearly may be of some use for a quick overview of price action, the quarterly chart offers more detail and makes trends, ranges and patterns more easily observable. I will be focusing on the latter for my analysis.
Yearly Chart
Quarterly Chart
Downtrend and the Falling Wedge
During the period of the Bretton Woods System (1945 - 1971), Swiss franc was pegged to the U.S. dollar at a rate of 4.375 per dollar. After the system was abolished, franc started to appreciate or, in other words, the pair (USD/CHF) embarked on a downtrend. Even though both dollar and franc are considered safe haven currencies, stronger demand for the latter has also bee…
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fxsurprise8 avatar

yep SNB will follow the ECB down

Milian avatar
Milian 1 Dec.

Good job!

al_dcdemo avatar

pipx We'll see, both central banks are definitely able to surprise markets. :)

al_dcdemo avatar

fxsurprise8 It appears so!

al_dcdemo avatar

Thanks to all for your great comments!

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19/47
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Forex trading is not rocket science. If you obey the principles, you will make money in forex. In this article, I will demonstrate a very simple strategy on how to use one of the commonly occurring chart patterns in the forex market to make some good money. The pattern to be discussed here is the falling wedge, which setup nicely on the GBPUSD and EURUSD before the market open for the week. That for the GBPUSD was more straightforward and is described here. The GBPUSD set up in a falling wedge pattern as shown below: The falling wedge is a bullish reversal pattern which is formed when the highs and lows of the price action can be connected to form an upper and lower trend line respectively, with the upper trend line slanting more than the lower trend line to form a falling wedge. The key to trading this strategy is to trade the expected bullish break of the asset from the upper trend line. Here are the steps that were used to deliver a profitable trade on this one. a) The first step was to delineate the borders of the chart pattern. In order to do this, the trend lines drawn must touch at least three areas where the price made highs, and three areas where the price made lows. b) W…
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p0002 avatar
p0002 5 July

Does anyone see some pictures? :-)

forexat avatar
forexat 10 July

I don't see images, and it's hard to understand :(

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