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USDCHF Trading

This trade came to us right after we looked at the charts. There was no hesitation at all. Sometimes trades come to you quicker than you expect. There are plenty of times when it’s like watching paint dry before you get in a trade. For today’s trade, on July 19, 2013 we found our trade within minutes of opening our charts. Usually we scan 5 major pairs on the currency markets. These include the EURUSD, GBPUSD, AUDUSD, USDCHF and USDJPY. Once we see something we like, we start to figure out were our best entry will be for the particular trade. In this case, it was the USDCHF(CHEF) that we took our trade. Price action across the board was pretty tight and choppy. The Chef was channeling perfectly for us on a 5 minute chart. This is when we noticed the price hitting the lows of the channel and pulled the trigger

The USD Swiss was trading between resistance one and support level one all night. It was using the pivot level as a center point, where price was fluctuating throughout the morning. As price formed some nice wicks at support level one, we then noticed the wick starting to form right before our entry. Price pulled an extended move through support level one, giving us our call option for the day. Price moved 1 to 2 pips against us in the first couple of minutes, but eventually shot up giving us a nice 10 pip winner on the binary markets. Any time you can get a big jumper candle after entry feels really good especially on a Friday. We will continue looking at USD Swiss as we go forward. Should the euro dollar not show us solid trade setups, we will consider the USDSwiss as a good potential trade option.

The image below shows price action coming off the mid-area of the channel from pivot. Notice how price action hit the support level one and bounced up 30 minutes before we entered our trade. You can see the green arrow pointing to the north side, which shows our entry. Price action jumped almost immediately after our 10 minute expiry started and by the end of the trade, consolidated 10 pips above our strike price. Price did reach new highs soon after our trade was over, but eventually dropped all the way back down to our entry level. Since the close of this trade price action has actually made new lows near support level two, giving traders a nice set up at this level as well. A nice 5 minute wick has formed and is now bouncing back up to support level one. It’s this type of price action that allows you to take the best trades possible. Sometimes it’s better to walk away from the markets when price is not moving very much. In this case, we are able to find some nice setups this morning while moving into the weekend with a nice winner.
Binary Trading the USDCHF
We will continue trading the binary and Forex market next week. We should have some better price action next week. Although we will trade what we see and not force anything that does not look great. Sometimes you want to jump on trades, but always remember what timeframe you’re in and avoid trades that may not work at some particular times. Just because a trade works at 8:30 in the morning does not mean it will work at 12:30 in the afternoon. Keep an eye out for more information about Forex trading and binary option trading and we’ll see you on Monday for the trade of the day.

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