As I have already stated in my previous posts that the most important thing to read current "Price Action" and which should be a part of "Trading strategy" is the recent price activity or behavior whenever a breakout happens,As when You accept to trade momentum and Fade out moves against the current trend then there are more chances that You develop such "Breakout system" that help you taking crucial decisions at crucial stages.
While I was preparing My this week updates then somebody told me that 1.3115 is extreme support for Eur/usd and It is suggested by leading banks to buy euro for a corrective move towards 1.3270 or 1.3310 probably, But I never take any such action that rely on Support and resistance and price did not give any clue whatsoever to reverse and this type of suggestions never influence my decisions. In reply I recommend to sell euro and If there is any time to sell Euro, then it is now and then next day Euro tumbles 250 Pips. (Suggestion was made on the basis with usd/chf strong Momentum)
Key points that we need to cover In this chart
I miss the great entry in Usd/chf and the reason I set Buy limit because I was looking for test of the value again which never comes and It tells you the upcoming strength of the pair and that exactly what happens. And there is no point in entering in between such strong move because You would ask to cover quickly or set huge stops which is never in trading style.But first spike was small and Entry was offered but Usually such rangebound conditions might have forced me to cover again and added with the momentum again.
While I prepare a checklist of that chart, Then I consider following points
Primary Breakout
Momentum After Breakout
How strong the rejection was (Passive Sellers)
Was there any supply Or Minor development area after neutral days
Most Important Point in this chart is Shift in value and that was the reason why price took so much time in range
when we see primary breakout and almost range bound trading after rejection and then price again hold higher prices or make a new high, Then It is important to line up that pair and see if value shifts again to the downside and behavior of price after breakout of value, and strength of pair should be strong enough to give you excellent continuation setup and that usually happens in strong trends.