Confessions of a Forex Trader

After the wild swings we saw last Friday because of the NFP announcement, there are some good opportunities this week, one of those is the GBPCHF:

GBPCHF

It is trading in a bearish market condition, just below the LT support level and below the ST range, meaning that only short opportunities are in play in the GBPCHF. We have plenty of room before it hits the next LT support level.

My Plan:

As long as the GBPCHF trades below 1.6745 I will be looking for short opportunities.

All long opportunities will be ignored

Trade Safe!
Raul Lopez

http://www.straightforex.com/

Please take a look at the GBPCHF daily chart:

GBPCHF

Interesting isn’t it? The GBPCHF is trading in a very well defined long term range, if you look at this in the weekly chart you’ll see it even clearer. What caught my attention though is the downward pressure present just at the top of the range. Right now we are already in a bearish market condition and I will be looking for short trade opportunities (until we hit the next LT level, but why not, I would be willing to hold my trade for the bottom of the range if there is enough momentum, it could take a while though… see how many days it took the GBPCHF to go from bottom to top?).

Anyway, I thought it was interesting…

Trade Safe
Raul Lopez

The GBPCHF traded near a long term support level (it even broke that level and traded in a bearish market condition for a few hours, but it is back now) for a few days but today it broke that range for the upside triggering a bullish market condition:

GBPCHF

Now it is in a clear bullish market condition and there are quite a few pips before the market hits the next LT lvl.

My Trading Plan:

As long as the GBPCHF trades 1.6516 I will be looking for long opportunities.

All short opportunities will be ignored.

Trade Safe!
Raul Lopez

The GBPCHF is trading around an important long term resistance level at 1.6698. If we take a look at the short term charts, we’ll notice the short term range the GBPCHF needs to break in order to start looking for a trade opportunity:

GBPCHF

Once the market leaves that range, we’ll be ready to start looking for a trade, but first we need to make sure it is out of that range.

Here is my trading plan:

If the GBPCHF breaks through the short term resistance level and keeps trading above that level, I’ll start looking for a long trade opportunity. My next LT resistance level is at 1.6932.

If the GBPCHF breaks through the short term support level and keeps trading below that level, I’ll start looking for a short trade opportunity. My next LT support level is at 1.6490.

If the market keeps trading in between the short term range I will do nothing.

Trade Safe
Raul Lopez