SWISS FRANC

Today's MARKET STATE SWISS FRANC **BEAR TREND ACCELERATION**

- The MKT is vulnerable to the offer and threatening fresh losses. On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous session’s high point. DIR and DP BREAKOUT strategies should just "go", so do not risk much. UP FADE strategies are recommended over REVERSAL strategies as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn.
- On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above the previous session high are a long shot, so risk less and go for more. Any DP FADE should have confirmation and is not recommended if the integrity of the previous session high is intact. After a break in the negative structure is confirmed, support levels can be used for short-term reactions using aggressive position management.

Today's PRICE MAP Performance for SF

Wrap Up

Identifying the KEY INFLECTION PIVOTS in a market is essential to successful trading.  Knowing which strategies to execute off structural levels is of equal importance and our MARKET TACTICS can help to confirm those strategies when the present themselves in the form of trading opportunities.  Today in the SWISS FRANC, there was a BEAR TREND ACCELERATION market state with the R at the UP.  The R Level marks the "over-under" level for the session, and any corrective rally is expected to exhaust below this level of resistance.  An upside breakout is considered "confirmed" if it is able to take out the minor level above the UP, in today's Pricemap it was the 1.0618 level.  Just after 7:00 am CT the market took a run at this level and FAILED to surpass it.  This failure to confirm the breakout called into question the strength of the underlying positive move and alerted traders to a possible "head fake" scenario.  Using our RSI tactic, it is clear that each successive high in price from 4 - 7 am CT was accompanied by a LOWER high in the RSI (BEARISH DIVERGENCE).  This was a "tell" to the underlying weakness, and after the REVERSAL presented itself, allowed our traders to short the market from the UP and ride the trade down to the DIR.