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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Pick of the Day: USD/CHF

Posted 21:16 04 May 2006 | Comments

We have the biggest short term, market moving report, US Non-Farm Payrolls, tomor row morning at 8:30 am EST. Tonight's pick is going to focus on that event.

Before I talk about the Pick of the Day, I'd like to remind everyone that this is the most volatile and dangerous report to trade. We're still up 37 pips for the week, even after the EUR/JPY trade, so it may be a good idea to just sit this one out and start the weekend early.

For those of you who still want to trade it, I will enter my orders between 7 - 8 am EST. If you are unable to enter your orders at the recommended levels, you'll just have to enter the trades manually. Very dangerous. The market moves so fast during this report that fill prices are not guaranteed by most brokers. I think if you are unable to get your orders in just wait about 20 to 30 minutes until after the report to enter, and wait to see if a trend forms. Again, this report is very difficult to trade. Be very cautious, keep your stops close, and trade in smaller lot sizes than normal.

Long USD/CHF at 1.2323, Stop at 1.2303, PT1 at 1.2350, PT2 at 1.2385

Short USD/CHF at 1.2215, stop at 1.2235, PT1 at 1.2187, PT2 at 1.2152

Good luck and good trading!