USD-CHF Finding Resistance at the higher of current Retracement
Trading should be easy and it should be fun. If you are not finding it to be this way, there is something you are doing wrong and you need to figure it out and fix it. We have got another set up that has completed on the USD-CHF cross. One way to make trading any of the G7 pairs easy is to know what the DXY index is doing. Once you know what this index is doing, there is no thinking that is required on your part to trade any of the majors. You simply trade, as if you are taking a walk in the park on a beautiful sunny Sunday afternoon, you simply walk. No need to think about the walking. Currently the DXY is in a down trend. It has found some resistance and is resuming its move to the down side. It is this resistance that is fuelling the current bullish moves on the GBP-USD, EUR-USD, AUD-USD and NZD-USD pairs and also dragging the current bearish moves on USD-CAD and USD-CHF. USD-JPY is behaving rather strangely. Given this framework within which to analyse your trade, USD-CHF has made a deep retracement to Fib 23.6, it has made a counter trend line break to the down side giving us all our three entry values before we jump into the trade. As shown on the chart, our STOP was given @ 0.9675,which is the higher of the U-turn, our TARGET is @ 0. 9502 , which is the Fib extension that is relative to Fib 23.6 retracement resistance and our ENTRY is @ 0.9646, giving us a low risk, 29 pips, higher return, 144 pips trade. I normally prefer to place my initial STOP above the Fib 100 shown on the just before adjusting it to the higher of the U-turn once the trend has solidified itself in is resumption. This helps to protect you from being taken out when price tests the backside of the counter trend line before resuming the main move. I hope this little helps. Happy trading at all times traders.
Trade active:
We have been stopped out on this trade for those who had their STOP at the higher of the U turn which is normal in this game between bulls and bears. For those who prefer to have a provisional STOP above the the Fib 100 level, the trade is still on. Do not fiddle with it. Simply WAIT. The resistance level for this pair is still intact. DXY is also having a hard time breaking its resistance level to the upside. So we are still SELLERS in this market. For those who have been stopped out, your job is very simple, because trading has to be simple. If you are finding it hard, there is something you are doing wrong. You need to identify it and fix it so that trading becomes easy. Your job now is to WAIT for first low that you will be given after the current high. Once you get that low, insert your 45 degree counter trend line on that low. Then simply WAIT for the candle that closes clear below the counter trend line. Then short the next candle. Remember to insert your alert so that you will be notified when price crosses your CTL. Your provisional STOP should be anywhere above the current high. I use +10 pips above Fib 100. Our TARGET remains at Fib 138.2. I hope this little helps. Thank you and happy trading along the way traders.