Look at this currency pair, it’s the clearest of them all

Hey trader, how is your trading so far this week?

As you already know I make a list of the clearest currency pairs to trade each day…

I try to focus on those pairs that have clear S&R levels + clear swings…

I see it this way… Trading is a probabilities game right? Ok, So I try to put the probabilities on my favor on each aspect of trading:

  • Long term charts
  • Short term charts
  • How I manage my SL
  • Keep adding to my trade
  • Etc

So what I’m doing here is putting the probabilities on my favor, and I know the market might go against me once or twice, but at the end, the probabilities will do its job, and I’ll come ahead.

What do you think?

Anyway… Here is one of the clearest pairs to trade today!

CHFJPY Long Term analysis

Here is the daily chart:

CHFJPY 1D

This chart is self explanatory, it’s clear that the CHFJPY broke through an important support level, so that means that it is likely to continue its way down, at least until it reaches its next LT support level which is at 109.34 (it is currently trading at 112.45).

So we’ve got plenty of room to look for our trade don’t we?

Now, lets take a look at the short term charts:

CHFJPY Short Term Analysis

Here is the hourly chart:

CHFJPY 1H

It’s also clear that it broke through the bottom of the range triggering a bearish condition. This confirms that I’m going to be looking for short opportunities.

So my plan right now is to:

  • Wait for a retracement to the ST resistance level at 112.63 and take a trade from there if I get significant downward pressure.
  • Or if it retraces back and we don’t get downward pressure we could take the breakout of the previous low.

Your Turn

What do you think about the CHFJPY? Are you going to trade this signal?

What other pairs are you monitoring?

Share your thoughts.

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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 .

  • TasosK

    Hi Raul,

    “Or if it retraces back and we don’t get downward pressure we could take the breakout of the previous low”. Which is exactly the “previous low” you are referring to? Perhaps, the 113.144 (previously LT Support and now Resistance)?
    Thanks a lot. Tasos

    • Raul Lopez

      Hello Tasos,

      Nope, if it retraces bak it will make a new “previous low” That’s the low I’m referring to…

      Goos luck!

      • TasosK

        I see…Thanks again!

  • H LIM

    Thank you Sir. Could you elaborate what exactly is the ‘downward pressure’ you are looking for? Candle pattern? Lower time-frame trend line break? Indicator……?

    • Raul Lopez

      Hello Lim, It’s all about how the market behaves around important levels… I’ve written plenty of articles about this before… go back a few pages and you’ll find them!

      Let me know if you need anything else.

      • H LIM

        Thanks Raul. Yes, you wrote so many articles, for which I’m sure many wld thank you. If I may, could you be specific on the articles I shd go look at? Thank you & God Bless you!

        • Raul Lopez

          Mmmm dont remember the title, just look price action on the title on my previous articles…

          Good luck!

  • Raul, do you set up an alert for if it breaks the previous low? Or do you already have a trade pre-setup?

    • Raul Lopez

      I use pending orders Crag! But you can setup alerts if you want to…

      • H LIM

        Hi Raul, does that (use of pending order) mean you enter trade as soon as price breaks the low, without waiting for the breaking candle to close, or waiting for price to retrace back to the low after it breaks the low as the black lines show? Thx.

        • Raul Lopez

          I use pending orders just for breakout trades, it’s impossible to use them for retracement signals!

          • Looks like it will retrace back to 113.035 level and then maybe trend down in the hourly chart again. I’m in this one but may have to close my short.

          • Raul Lopez

            Hey Craig, it’s still trading in a bearish condition… did you close your trade?

            Let me know.

  • Muhammad Ali Awan

    Thanks Raul.
    How do we decide which is the pivot point and which are R & S levels.

    • Raul Lopez

      Well, they are different things… the pivot is the pivot and S&R levels are S&R levels… The pivot is calculated using a mathematical formula, S&R levels are 2 or more rejections off an important level…

  • Waqas Khan

    thanks

    • Raul Lopez

      No problem Waqas, let me know if you have any question alright?

  • histomi

    Am in for your strategy.. already in the trade with my crossover M. A exponential….

    • Raul Lopez

      Good luck Histomi! We’ll see what happens…