Something that happened during the holidays
I didn't took this trade but our set up occurred again after the previous one almost back to back
This happens quite often in the CHF pairs
So because there is not clear support area i was going to take a 30 pips potential loss in this one
for 2 reasons
1) A lot of volatility in the markets and...
2)This pair is completely crazy! The market noise and the spread can be really dangerous if you don't give it enough space to complete the set up. So to place a the SL below previous structure support increase the chance for a succesfull trade
Profit target just few pips below the previous Double-top
As you can see we create a positive R/R ratio so the trade could be executed
Also i have drawn two Fib retracements to justify the entry point... :P
I didn't took this trade but our set up occurred again after the previous one almost back to back
This happens quite often in the CHF pairs
So because there is not clear support area i was going to take a 30 pips potential loss in this one
for 2 reasons
1) A lot of volatility in the markets and...
2)This pair is completely crazy! The market noise and the spread can be really dangerous if you don't give it enough space to complete the set up. So to place a the SL below previous structure support increase the chance for a succesfull trade
Profit target just few pips below the previous Double-top
As you can see we create a positive R/R ratio so the trade could be executed
Also i have drawn two Fib retracements to justify the entry point... :P
Note
Confirmation in the 30 minNote
And this is the 5 min chart. Now as you can see we don't have a clear RSI Divergence signal here. The price closes lower but the RSI didn't close below 20. We could consider this trade valid but if you check the trading hours this takes place at the closing of the markets and 1) the spread is huge and 2)the next day was Friday... I was going to think twice about it...maybe i was going to trade it with half position size.
Note
I don't usually give to much attention in the 5 min time frameI use it as a tool to find the best possible entry point in the market so i can generate the best R/R ratio from the set up because we have a maximum limit of 1.5% risk per trade so... we need a consistent and systematic way to find the best possible entries to protect our SL from market noise
For signal purposes i am going to use 4h and 1h and for confirmation the 2h and the 30min time frames respectively.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.