Live Trade – USD/CHF

Filed under: Live Trades |

Well, my trade on the USD/CHF pair has not come off and the stop loss has been hit for a -1% loss on the trading bank. That is a -4% loss for February now after the nice +6% gains in January. However, we will not panic and lose focus, and we will continue to follow our methodology and try to make the right decisions.

 

FIgure 1.

FIgure 1.

The loss in question had a fantastic risk-reward scenario of 1:8, and in that respect, it was a trade well worth taking. If you look at Figure 1, you will see the support/resistance level that we were trading at on the daily chart for the USD/CHF pair. Notice how the trend is very bearish, and how price is retracing back up to a previous low and support/resistance zone.

 

Figure 2.

Figure 2.

If you now look at Figure 2, you will see the 4-hour chart for this particular pair. We entered the trade at a 50% retracement of the first pin bar right at the level of support/resistance (marked with a green band). This was followed by a bearish engulfing pattern confirming the pin bar, and at this point, I was very optimistic. A further pin bar and bearish engulfing bar formed, and I remained optimistic after this. However, when the pair gapped up at the open of this week, I started to get worried and thought about taking a breakeven exit. I didn’t, and the stop loss was subsequently hit. Given that the pair started to move sideways and did not decisively break to the downside within eight sessions on the 4-hour chart, I perhaps should have exited at breakeven. However, whenever I seem to adjust my stops, it seems to prevent me from getting profits (5% lost this year by moving stops to breakeven!). Therefore, it is just typical that on this occasion, the stop loss was hit for a loss.

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