Live Trade – USD/CHF

Filed under: Live Trades |

 

I have a live trade on the USD/CHF pair at the moment (the pair for the United States dollar and the Swiss franc), and I would like to talk you through the ins and outs of this trade right now.

 

Figure 1.

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the USD/CHF pair. I have drawn in a significant level of support/resistance at the bottom of the chart (marked with a horizontal green band), and this has been a level that I’ve been keeping a close eye on. Therefore, when price broke through this level, and more importantly, closed beyond this level, I was keeping a close eye out for any pullbacks back up to this level. More specifically, I was looking for any bearish price action signals at the level of support/resistance that might tip us off to the fact that the bearish trend might be about to resume. So, when a nice pin bar formed right at this level, confirming that the area of resistance had become the new support level, 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, and a target set of two and a half times the risk.

 

As you can see, my order was filled, and yet another pin bar has begun to form. This market now looks quite bearish to me, and the probability of the market going further down seems to be quite high. However, there are no certainties in the forex market, and as such, we will have to see how this one plays out. That’s it for today, and I’ll be back tomorrow with yet another forex price action trade example.

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