Live Trade – USD/CHF

Filed under: Live Trades |

Another day, and yet another successful live trade to tell you about, this time on the USD/CHF forex currency pair – which for those of you that don’t know, is the exchange rate between the US dollar and the Swiss franc.

 

Figure 1.

To begin with, take a look at Figure 1. This is the 4-hour chart for the USD/CHF pair. The pair had been in a very powerful downtrend on the daily chart, so I was only looking out for any price action signals that confirmed this bearish momentum.

 

Figure 1 shows that price had been moving down in that familiar stepping action. Price formed a resistance level on the way down, before breaking through this level, and then retracing back up in classic fashion. Price could not break through this support/resistance level, and a pin bar formed, followed by a bearish engulfing pattern. As the pin bar was not wholly convincing, I waited for the bearish engulfing pattern before putting an order in. My order was to go short at a 50% retracement of the bearish engulfing bar, with a stop loss placed just a few pips above the high of the pin bar, and a target of two times our risk.

 

Our order was eventually filled after two more candles had formed, and our target was met for a very nice 2% rise on our bank; which takes us up to a 9% rise on the bank for September (with a bank of 10,000 GBP and a risk level of 1% of the bank per trade). Proof of all of this is published on My FX Book at:

 

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

 

Well, that’s all that I have for you this week (and a very good week it has been too!), and I’ll be back next week with yet more live trades and examples of forex price action setups. Until then, have a great weekend.

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