About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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February 2006

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Pick of the Day: USD/CHF

Posted 7 years ago | 11:33 PM | 20 Feb 2006 | Comments

Today's idea is based on the possible volatility of USDCHF after the Trade Report which is coming out tonight at 2:15 am EST (1915 GMT). At the moment the pair is trading above the 200 SMA and below the 100 SMA and 50 SMA. I use them as support and resistance areas, so if there is a break and a candle closes beyond either of these areas I'm going to take the trade.

To be more specific I am going to set an entry order long USDCHF at 1.3112. My stop will be at 1.3293. Of course, I will be going for 10 pips, but for the daredevil traders I've have found an aggressive profit target of 1.3133. That makes the long trade a rough 1:1 reward to risk ratio.

If USDCHF goes the other way I am looking to short at 1.3040 with my stop at 1.3055. Going for the quick 10 pips and I don't have an aggressive target because I think my entry is pretty far where the the pair is currently trading at. Good luck and good trading!