Live Trade – USD/CHF

Filed under: Live Trades |

I currently have a live trade on the USD/CHF forex currency pair (the pair for the United States dollar and the Swiss franc), and I would like to talk you through the setup for this trade right now.

 

Figure 1.

If you take a look at Figure 1, you will see the daily timeframe chart for the USD/CHF pair. This is the only timeframe that we will need to look at for this particular setup. What you can see is that the pair is in some nice downward momentum, with the 8-day exponential moving average crossed well below the 21-day exponential moving average. I have also marked in on the chart a couple of good areas of support and resistance. So, when price retraced to one of these levels and bounced off it with a pin bar, I had a good long look at this chart. I also found that this area was a 50% Fibonacci retracement area, so this added further confluence to the setup. Therefore, at the close of the pin bar, I put an order in to go short at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the pin bar, a target set of two times my risk.

 

As you can see, this order has been filled, and we are currently around 100 GBP in profit. I will keep you posted on how this trade progresses throughout the week. However, regardless of the outcome, I am happy with entering this trade because it ticked all of my trading boxes. It is with the trend, a good price action signal is bouncing off of a good level of support/resistance, and for added confluence, and it is also a 50% Fibonacci retracement area. You cannot really ask for more than that – but at the end of the day, all this does is to tip the odds in our favour.

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