Usdchf Trade Setup

Written by on July 28, 2010 4 Comments

Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.

As the usdchf currency pair holds above weekly support, it offers the potential of a profitable long trade. The daily timeframe, in what has appeared to be a major downtrend, broke the up trendline. At the moment it appears that a head and shoulders setup is underway. The left shoulder is at the 1.0850 level. This is marked by the green horizontal line on the chart below. If price were to test this area, I will be looking to short there.

However, the current trade setup that I am watching is a buy. I will be using the 4hr chart for entry. A short trade was called in the trading room this morning, which is targeting the support marked on this 4hr chart. The support comes from the trendline which was broken yesterday, as well as the congestion area of past resistance at 1.0540.

Trading Strategy

  Wait for a retest of 1.0540 support, (or place limit orders around the area) to buy. I will be placing a stop loss at 1.0400. My first target for profit is 1.0620, but the main target is 1.0850, the potential right tip area of the daily bearish reversal. This trade setup offers a potential of over 1:2 risk/reward ratio.

Thank you. If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.

 When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.

 Thanks for reading. You can also see my thoughts on eurusd here: http://www.winnersedgetrading.com/eurusd-technical-analysis-3/

Other useful blogs:

 Forex Crunch: EURUSD- This is Resistance

 The GeekKnows- Daily commentary on eurusd

One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.

Categories: Sophia Smith Tags:

  • http://twitter.com/FXstorm Sophia Smith

    Hey, welcome back, Yankee!! Good to know you're ok :)

  • YankeeClipper1

    Hi Sophia,
    I'm back in the land of the “living” again. I did see your tweet asking how I was. Just to let you know I'm ok. You can't keep an old trader down for long lol

    Hope ur ok too

    Mike (Yankee)

  • http://twitter.com/FXstorm Sophia Smith

    Thanks a lot for your input, Robby. I have been in since the retest. My rate is 1.0540. I'm excited to see how it plays out :) Have a great day!

  • Robby

    Yes Sophia this looks real good and i'll be checking it also at 6:00pm—here is what i have — We have a trendline break on the 4 hr above the tunnel of 5 —a retest of the 21ema a the 38.2 fib — price action last bar was a reversal spike—-If this price closes above the tunnel of 5 and the adx hold above 30 i'm in for a buy. …my target 138.2.My intial stop will be below the tunnel of 5.I'll be risking 1% with 2 postions.