Direct from the desk of Dane Williams.
So it turns out that miracles do happen after all.
After shorting USD/CHF off resistance after Monday's open, I today woke up to the pair having paid out a clean 1:3 risk:reward.
If you missed the pre-curser to this trade, click the link in the paragraph above and check out the initial setup.
For now, let's go into the details around my thoughts and show how it played out below.
USD/CHF Intraday View
I'm skipping the daily view for this one because nothing has changed in a day.
All you need to know is that we're below higher time frame resistance so were looking to short.
This was the intraday setup that was presented to us.
USD/CHF Hourly:
I don't place much weight on that channel I've thrown onto the chart, but it adds another level of confluence nonetheless.
The most important thing on this chart is the fact that price is retesting previous short term support as resistance.
Very cleanly too.
Pretty self explanatory, yeah?
Now let's move on and see how the price action played out on Monday's open.
Updated USD/CHF Hourly:
You can see that price opened underneath our higher time frame resistance centre line for one.
It then moved a tiny bit higher before the big boom rejection came in and the pair dumped.
I know that some of you may have been stopped out here, but it was a 4 pip intraday zone and price moved 7 pips above it...
Sure I encourage tight stops because it allows you to take trades with huge risk:reward, but surely you weren't that tight...
So I guess the Swissy isn't too bad after all.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.