I just went short usd/chf
There is a lot of weakness on usd/chf, and as I predicted the news will be bad for USD. I'm trying something new on this trade, by combining RSI divergence with VSA principles. This trade is only experimental and I don't normally trade counter trend, this is somewhat trying to catch a falling knife. But the R/R is right so I'm going to dump 1/2 of my position at +160 and let the other half run until it reaches oversold with a stop above the UT, -130 pips. This way the only way I can loose is if price does not reach my first target. Something that never ceases to amaze me is how well S&R lines work sometimes. That dotted red line on the chart was drawn 2 weeks ago, it was an old area of support and also a 61.8% fib level..
There is a lot of weakness on usd/chf, and as I predicted the news will be bad for USD. I'm trying something new on this trade, by combining RSI divergence with VSA principles. This trade is only experimental and I don't normally trade counter trend, this is somewhat trying to catch a falling knife. But the R/R is right so I'm going to dump 1/2 of my position at +160 and let the other half run until it reaches oversold with a stop above the UT, -130 pips. This way the only way I can loose is if price does not reach my first target. Something that never ceases to amaze me is how well S&R lines work sometimes. That dotted red line on the chart was drawn 2 weeks ago, it was an old area of support and also a 61.8% fib level..
I'm planning on dumping 1 position at around 0.7721
Initial Risk: 91 & 129 Result: +28 +18
UPDATE: I closed the whole position because there didn't seem to be enough selling pressure to bring price down to my first target and we were in an uptrend, so the path of least resistance is up.
UPDATE: I closed the whole position because there didn't seem to be enough selling pressure to bring price down to my first target and we were in an uptrend, so the path of least resistance is up.
usd/chf is looking good to short, but I prefered to short eur/chf .. more likely to go down !!!
ReplyDeleteSpecially if you look weekly chart on the U/CHF I see a Reverse UpThrus on high volume after a nice down move.
yes, you're probably right. However CHF is directly correlated to gold, and I am predicting that gold is going to fall.
ReplyDelete