Live Trade Order – USD/CHF

Filed under: Live Trades |

I currently have a live trade order in on the USD/CHF pair (the pair for the United States dollar and the Swiss franc). I deliberated over this setup for quite a while, but in the end, I decided to put an order in. I hope this is not a case of needing to be in the market, as I have not yet had a trade this year. However, it does seem to be a reasonably good setup.

Figure 2.

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the USD/CHF pair. What you can see here is that the 8-day EMA is crossed below the 21-day EMA, and the pair has been moving nicely down from left to right. Thus, the market is bearish. Also, we are seeing lower highs, and lower lows, which is always a good sign. I have also marked in a good area of support/resistance (marked with a horizontal green band). If you look back further on the chart, you will see that this is a very important level going back some time; and it has been respected on numerous occasions. Price has just made two bearish pin bars penetrating this level, and this tells us that the bearish momentum is perhaps about to resume.

Figure 1,

Figure 2.

Next, take a look at Figure 2. This is the 4-hour chart for the same USD/CHF pair. What you can see here is that price has been moving down, and we are again experiencing lower highs, and lower lows. Price has then formed an inside bar at an area that also happens to be a 50% Fibonacci retracement area, and it also happens to be right at our area of support/resistance. Therefore, I put an order in here to go short at the break of the low of the mother candle of the inside bar, with a stop loss placed just a few pips above the high of the mother candle of the inside bar, with a target set of two times the risk. If the trade moves to 1R, then I may move the stop to breakeven as there is another minor level of support/resistance that will need to be broken before the target can be reached. More tomorrow…

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