Live Trade – USD/CHF

Filed under: Live Trades |

I had a successful trade on the USD/CHF forex currency pair yesterday, which you can see the result of on my published forex account at:

 

http://www.myfxbook.com/members/jjrgaskell/daily-trade/357261

 

Figure 1.

If you first take a look at Figure 1, you will see the daily chart for the USD/CHF pair. What you can see here is that the pair had been in a very tight trading range, and that price had recently broken out of this trading range to the up side. Therefore, once price had broken out of this trading range, I was on the lookout for any bullish price action signals coming back down towards the old level of resistance (which is now the new support level).

 

Figure 2.

If you look at Figure 2, you will see that when price reached our area of support/resistance, a very nice bullish pin bar formed. When I saw this, I immediately put an order in to go long at a 50% retracement of the pin bar, with a stop loss placed just a few pips below the low of the pin bar, and a split target of one and two times my risk (with my lots split 70/30 and with risk-reward targets of 1:1 and 1:2 respectively).

 

As you can see from Figure 2, my order was filled and price bounded up to hit both my targets in a very short space of time for a profit of around 132 GBP. A less conservative approach would have been just to have a risk-reward of 2:1 for all of the lots, which would have made a profit of around 200 GBP. However for now, we will try to stick to the more conservative approach and try to ascertain which system has the better edge. That’s all that I have for you today – and I’ll be back tomorrow with more forex price action trade examples.

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Your email address will not be published.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>