USD/CHF was one of the lowest priority pairs I wanted to look at, but it was still on my list. When I looked through my whole list on Thursday morning, this actually ended up being one that stood out to me. Price was clearly pushing down (though there’d been some long-term rallies within that) and this morning, price had pushed through a fairly strong support area and was up slightly on the day, hovering around another support area. Since this had the tendency to push in one direction for several days in a row, it looked like a very, very good short play.
Entry – 0.93999
As a matter of fact, I think I even ran the numbers on this short prior to actually pulling the trigger here, and liked those numbers too; but I was already in the AUD trade, so I didn’t do anything. I kept my eye on it, though, eventually saw a nice pattern (Price had rallied for a few minutes, reaching a previous resistance area that held as support, and based around that area) and set entry orders.
Entry – 0.94
Target – 0.938
Stop – 0.941
Exit – 0.94006
Price pushed into my favor almost right away, then hovered between .5R and 1R. With my trailing stop moving to break even, price did push up enough to trigger it eventually. Technically it was a 2 pip loss, but, yeah, break even. Another case of the realities of trading, I think. I followed all of my rules, took a trade in the overall direction and looked for a pattern.
I guess the argument can be made that I took the pattern short after a rally, instead of after a down move (suggesting another, further, breakout) — but it’s a 5 min. chart, so I was paying more attention to the overall direction rather than that one specific detail; and I’m not upset about this trade at all.
