Paper trade: Long USD/CHF @ 1.03498, Stop 1.03240
USD/CHF is chalking a wide V pattern now. The up-leg has played out nicely for 2/3 of the way. According to T-theory, USD/CHF should reach 1.045 on Monday. Furthermore, USD/CHF is testing support at the top fin of the Fibonacci fan line as seen in Figure 1. 1.034 is also a short term support by an up-trending line, see Figures 1 and 2. Lastly, the current trend is up as shown by my 2-MA lines in Figure 1. In summary, both short and intermediate trends are aligned and we’re at support now, thus, I bought when the reward/risk is favourable.
Entry: 1.03498
Stop: 1.03240
Target: 1.0450
Reward / Risk = 100.2 pips / 25.8 pips = 3.9
I initially placed my stop at 1.0295 but realized the reward/risk was horrible. So I moved my stop up to make this a shorter timeframe play (i.e. a quick reflex bounce).
On another note, the order types at Oanda (my forex broker) is severely handicapped. It only has the basics. For example, I would have liked an order-cancel-order type so that I can place a contingent exit at the profit target and the stop.
USD/CHF 4-hour
USD/CHF 30-min
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