One should wait for a breakout on the USDCHF
. Currently, Bollinger band
width is quite low, implying a consolidating market. However, If any approach towards support or resistance is made with high volumes, and a substantial increase in the bollinger band
width, then one should go with the trend. Till any breakout happens, and bollinger band
width remains low, one can trade off of corrections from beyond two standard deviations consistently(eg long if it's around three standard deviations below the 20 period sma
, and close the trade at somewhat below the 20 period sma
).The Risk Reward ratio for such trades may not be very attractive, however, given a consolidating market, these are also high probability trades.