A few days back I wrote about the CADCHF, I thought that it was a currency pair worth monitoring and it was probably a good idea to look for long opportunities.
Why I thought that?
Back then, it broke through an important resistance level, and its next LT resistance level is way up (more than 250 pips away from where it is currently trading).
Plus, it’s got clear S&R leves and clear swings.
So we’ve got the formula of a high probability trade.
The thing is this, in order to get to the point where you know what the market is likely to do, you need to do your long term analysis (which is why we arrive to that conclusion), ok.. check, we already did that…
But in order to get in the market, we need to analyze the short term charts, and we need to adapt to the market conditions and find a good entry.
And that’s what we are going to do with the CADCHF.
CADCHF Short term analysis
Take a look at the short term chart:
As you can see, it is trading in a clear range, which is good for us because this way we know exactly at what levels the CADCHF might retrace.
This also helps us determine a trading plan for it, and here is mine:
Long stop entry: 0.8287
Stop loss: 0.8250
Take profit: 0.8490
The risk reward ratio in this trade is 5.4:1, pretty good huh?
Imagine if every trade you took had this risk reward ratio?
What do you think about the CADCHF?
Are you going to take this trade?
Do you have any open positions in other pairs?
Leave a comment.