USD/CHF Trading Setup PlanUSD/CHF Trading Setup Plan
Target Price: 0.9350
Stop Loss: 0.8980
Strategy Type: Correction-Finish Rebound
1. Market Analysis
Trend Assessment: Identify whether USD/CHF is in an overall uptrend, downtrend, or ranging market. Look at the daily and 4-hour charts to assess key trends.
Key Levels:
Support: Identify zones where price previously reversed or consolidated near 0.8980.
Resistance: Observe reaction levels closer to the 0.9350 target.
2. Setup Parameters
Entry Condition: Wait for the price to complete its correction phase:
Use Fibonacci retracement levels (38.2% / 50%) or recent breakout support areas to pinpoint a potential end of the correction.
Confirm the correction finish with candlestick patterns like bullish engulfing or hammer patterns, accompanied by rising momentum indicators (e.g., RSI > 50 or MACD crossover).
Entry Trigger:
Enter on the next candle's close after confirmation of the bullish rebound.
3. Risk Management
Stop Loss:
Place your stop loss slightly below a recent swing low near 0.8980 to limit downside risk. This should align with the broader market structure.
Position Sizing:
Risk no more than 1–2% of your trading capital on this trade. Adjust position size based on your risk tolerance and pip difference between the entry and stop loss.
4. Target Management
Initial Target:
First take-profit target is the 0.9350 level.
Partial Profit Booking (Optional):
If risk-reward > 1:2, consider trailing your stop loss or closing part of the position at intermediate resistance levels.
5. Monitoring & Execution
Continuously monitor the fundamental drivers influencing USD/CHF (e.g., economic data releases, Swiss franc or US dollar sentiment shifts, central bank policy).
Stay vigilant for breakout conditions invalidating this setup if USD/CHF breaks below 0.8980.
Disclaimer
This strategy is for informational purposes only and should not be construed as investment advice. Trading forex involves substantial risk, and you may lose more than your initial investment. Please trade responsibly and consult a financial advisor if needed.