BCH/BTC Price Analysis: Bulls on board with the W-formation

Further to the prior analysis, BCH/BTC Price Analysis: Daily upside extension in the making, the price action, as expected, is teeing-up for a bullish outcome. 

The following outlines the prospects for the set-up from a swing-trading perspective. 

Daily chart

The W-formation was completed on a retest of the neckline in a full 61.8% Fibonacci retracement. 

The prospects from here are now bullish for an extension to the upside. 

The 4-hour chart can be used to identify an optimal entry point and stop loss. 

As illustrated, with MACD in positive territory, if bulls are not already engaged, a pullback to the last high and confluence of the bullish 20 EMA would offer a discount for a 1:3.5 risk to reward set-up.

The stop-loss can be placed below the structure.