Live Trade – USD/CHF

Filed under: Live Trades |

I currently have yet another live trade order set (there seem to be a lot of good trade setups at the moment). This time, the order comes on the USD/CHF forex currency pair, which is the pair for the US dollar and the Swiss franc. If you take a look at Figure 1, you will see the setup in question.

 

Figure 1.

Figure 1.

Figure 1 shows the daily chart for the USD/CHF pair, and this is the only timeframe that I am looking at for this particular setup. As you can see, the 8-day exponential moving average has recently crossed below the 21-day exponential moving average, signalling that this market is becoming more bearish. I have also marked in a minor level of support/resistance on this chart (marked with a horizontal red line), which marks a swing low point as price moved lower. The candle I am really interested in is the bearish pin bar that is rejecting this area of support/resistance.

 

I have thus put an order in to go short at a 50% retracement of this candle. From the chart in Figure 1, it looks like this order has been filled, but in fact, we missed out by just a few pips (6 in fact!). My stop loss should this order be filled is just a few pips above the high of the pin bar, with a target set of four times the risk, which is comfortably before the next important support/resistance zone (which you can see at the bottom of the chart, marked with another horizontal red line). I would be very pleased to get this order filled, as this pair does look quite bearish at present. However, if price were to move quickly, then our order may not be filled, and we may well miss out on this one.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>