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DK_Investment
Sep 3, 2019 7:14 AM

USD/CHF - strong sell incoming - how to trade  Short

U.S. Dollar/Swiss FrancFXCM

Description

market is near strong resistance trend line which confirmed already two times a trend reversal.

The growth of this pair cannot be explained by economic reasons as the US is going into recession and economic war but the US dollar pair is still gaining strength, so I strongly assume that this pair has been manipulated upwards by targeted long investments. This is usually followed by a fairly quick sell-off as shown on the chart.

-MACD baselines on 4H is near bearish crossing which brings sellers into the market
-RSI retraced from heavy over selled area which brings sellers into the market

how to trade:
wait for entry at drawn sell area or for an confirmed breakdown from up trend line which is bearish indicator as well

Trade active

Comment

TP1 reached

Comment

Comment

Trade closed: target reached

Comments
FXCM
Good stuff, thanks for sharing! Would appreciate any feedback you have on our idea:
linkdown
What was the EP Target Price * It never reached to the selling area ! ?
DK_Investment
@linkdown, I‘ve showed two possible entry points. First at bubble sell area and another after breakdown from up trend line, this was my entry in this case
linkdown
Sorry its a silly question! how to take TP1 & Tp2 ( place two trades same time ) or use trailing stop ( with what min pips ) ? thx
DK_Investment
@linkdown, there are no stupid questions, just stupid answers :)

How you can place the orders depends on your provider.
For example, I am at Plus500 and can place partial orders there at the drawn take profit areas.

The Trailing stop depends entirely on your trading strategy and the market. If it is a volatile market I recommend a larger trailing stop, if the market does not have a large volatility you can also set narrower trailing stops. Unfortunately I can't answer your question as a whole because I need more information about your trading strategy.
linkdown
@DK_Investment_Consulting, Got it , thx
Bullandbeartrading
I like your short analysis !
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