Here is how I’m going to trade the CADCHF (great opportunity)

Hey traders whats up? How is everything?

We need to remember that our job as traders is to find:

  • the clearest trade opportunities
  • and those with the lowest risk involved

How do you find them?

It’s easy… find the currency pairs with clear S&R levels and clear swings… that’s it!

You are good to go!

Good luck!

Hehehe wait… you want more?

Ok…

Look, sometimes the market behaves in unexpected ways and there is nothing we can do about it. The thing is that most of the time, the market moves from one level to the other… And there is where we come in… we try to take advantage of those swings.

For instance, take a look at the CADCHF

CADCHF daily

In the chart above you can clearly see the market swings… It’s clear that it broke through an important resistance level and it is likely to continue its way up.

Now the only thing that we need to do is to find the right place to go long… in order to find it we need to look at the short term charts:

CADCHF Hourly

(Dont worry about those large candlesticks… it’s Yellen speaking)

The idea here is to wait for the market to settle down, if it moves down to the short term support level and we see upward pressure around that level, I’ll definitely go long.

That simple…

Your turn

What do you think about the CADCHF? Are you going to trade it?

Which currency pair you think is the clearest one to trade right now?

Share your thoughts in the comment section.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Chris Williams

    Raul – thanks. As it happens, of course, CADCHF did retrace to 81.7 and engaged my small bid. It went to 81.9 but is coming back. Right now, being risk averse I’m inclined to pocket the small gain rather than watch it go lower than 81.7. (I’m at the half way point of recovering some heavy losses from last September and so am very cautious).

    But I’m still curious about how your approach translates at this point. When it went to 81.7, it didn’t quite reach your 81.65, so I take it you are still waiting to buy. While I’ve read your excellent guide I am still wondering at what point you will decide in this particular case (assuming it doesn’t retrace to your preferred level) that the breakout is on.

    With best wishes.
    Chris

    • Raul Lopez

      Hey Chris,

      Yep, sometimes you need to be patient… but you dont need to wait for the market to exactly hit your number… It’s not whether it hits that level or not, but how it behaves when it gets close to that level…

      In this case, I need to see some kind of upward pressure, and once I get that pressure while in a bullish condition, I’ll go long…

      My other trade scenario is a breakout from the previous high…

      Good luck!

      • Chris Williams

        Thanks Raul
        Chris

        • Raul Lopez

          No problem Chris… Let me know if you need anything else.

  • Chris Williams

    Hi Raul – I like the strategy and I’ve put in an order at to buy at 81.7. The trouble with all such strategies of course is that they are premised on the pair actually retracing! I’ve missed quite a few good runs up and down over the last 12 months waiting for retracements that don’t happen. So I’m interested to know at what point you will feel the evidence is that the retracement to your preferred level is not on, and that it is time to say now is the time to buy.
    Best wishes
    Chris

    • Raul Lopez

      Hey Chris, that’s exactly the reason I use both strategies: retracement and breakout strategies…

      Because as you say, sometimes the market just doesnt retraces back, and that’s a big problem when the market has momentum…

      Try using breakout strategies…

      Dont forget to let me know how it goes ok?

      Good luck,

  • APOSTOLIS

    sorry, meant support level at 1.3685 :)

    • Raul Lopez

      Got it!

  • APOSTOLIS

    I think EURUSD rests on a strong resistance level around 1.3685. I think it is very probable to see a retracement back at 38.6% level at 1.3780. plus do you see the Pin bar already formed thursday

    • Raul Lopez

      Yes, it’s possible to see a retracement here (not to any fib level, but to the top of the range), take a look at this range in the USDCHF…. its way clearer than this one…

      It’s friday though, if we are going to see some rejection from that level it’ll have to be early monday!

      Have a great weekend!

      Good luck!

  • APOSTOLIS

    ΟΚ, just one question, maybe two. CADCHF is highly negative correlated with Eurusd. If your forecast is to increase of about 350pips means that similarly EURUSD will fall about 300-350pips as well bellow 1.3400, Do you think that is this possible? Second I agree with you about CADCHF do you also see the Inverted H&S pattern at the daily chart?

    • Raul Lopez

      I wouldnt take a trade in the EURUSD because of what other pair or cross is doing… In fact, right now I would not touch the EURUSD… I’d rather trade the USDCHF which is much clearer…

      And about the H&S pattern, I guess that could be one… but not clear enough… what do you think?

  • Waqas Khan

    yes i am going to trade this one. all chf pairs are too slow and i think it will take more than one month to hit the TP.
    Where did you place your stop loss level?

    • Raul Lopez

      All SL in this trade should be placed below the ST support level…

      Good luck Waqas!