Live Trade – USD/CHF

Filed under: Live Trades |

Our live trades are still going very well this month, and I’ve just had another successful trade on the USD/CHF forex currency pair (which is the pair for the United States dollar and the Swiss franc). I would like to take you through the ins and outs of this trade right now.

 

Figure 1.

To begin with, take a look at Figure 1, which is the daily chart for the USD/CHF pair. What you can instantly see here is that the pair has been in a downtrend. The 8-day exponential moving average is crossed below the 21-day exponential moving average, and it has been for some time. In this kind of market, we are best to be on the lookout for any price action signals that confirm this bearish momentum, as any other trade would be going against the flow. I have also marked in an area of support/resistance at the bottom of the chart (marked with a green band). This was an area that I was on the lookout for any bearish price action signals.

 

Figure 2.

If you now look at Figure 2, you will see the 4-hour chart for the same USD/CHF pair. What you can see here is that a nice bearish engulfing pattern formed right at our area of support/resistance. I put an order in here to go short at a 50% retracement of the bearish candle, with a stop loss placed just a few pips above the high of the move, and a target of two times my risk.

 

When the trade was in profit equal to that of my risk, I took 70% of the profits and let the other 30% run. As it turned out, the target was hit and this left me with a 1.3% rise on the bank. Well, that’s it for this week – and hopefully, we will have more trades like this one next week. Have a great weekend.

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