Wolfe Wave Trade Set ups - 3rd March

GBPCHF - H4 Chart, Potential LONG

The 4 hour GBPCHF chart has a wolfe wave already formed. A confirmation can be taken from the sharp change in Schaff Trend Cycle, at Wave 5. However, the Fibonacci Level of 76.4% or 1.42104 was tested and proved to be a strong resistance. A breach of this level will see price heading to 1.42925.

An ideal trade set up would be to wait for a breach of the 76.4% level, preferably a candle opening above this level with stop placed at 1.40926 and take profit at 1.42925.

In terms of risk to reward, this is a risky trade, but the price is likely to be hit. With a bit of caution and monitoring the chart in real time could help in placing a more conservative stop loss.

On the H1 chart, we see another target being formed at 1.42016. A breach above this level should give us the confirmation to go long. Also bear in mind that the Shcaff Trend Cycles for both H1 and H4 are still bearish, so we will wait until the cycle turns bullish.

CHFJPY - Daily Chart, Potential SHORT

The daily chart shows us a wolfe wave being formed along with the Schaff trend cycle confirming a reversal. The potential target for this trade could well be the 91.498, along with the possibility of price further heading down to 89.632.

If we check on shorter time frames, we notice the H1, H4 still showing a bullish bias on the Schaff Trend cycle. Waiting for a bearish turn of the cycle will provide an ideal entry point, which is likely to be between 50% and 38.2% regions.

A stop loss at 101.859 looks safe.