I'm looking at a promising long setup on the USD/CHF pair based on the 30-minute chart using Elliott Wave analysis. Here’s my strategy for this trade:
- Entry Point: I'm planning to enter a long position around the current price level of 0.89610. This is just after the completion of wave (4), indicating a potential upward move.
- Targets: My primary target is the 1.618 Fibonacci extension level of the wave (3), which is approximately 0.90950. This level is often seen as a strong resistance point in Elliott Wave theory and provides a significant profit potential.
- Stop Loss: To manage risk, I'll place a stop loss slightly below the low of wave (4), around 0.8920. This level ensures that I’m protected in case the market moves against my position while still allowing for normal market fluctuations.
- Trade Management: I'll closely monitor the price action as it moves towards my target. If I notice strong resistance or reversal signals before reaching 0.90950, I might consider taking partial profits and adjusting my stop loss to break even to secure gains. If the price continues to move favorably, I will let it run to the target.
This trade setup is based on clear Elliott Wave patterns and offers a favorable risk-reward ratio. By following this plan, I aim to capitalize on the anticipated upward movement while effectively managing risk.
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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.