Potential Trade Set ups 01/03

There are three really nice trades getting ready. If you have been following my previous posts, you might have guessed that USDCHF, GBPCHF and EURUSD are the three pairs in question.

Let me quickly run you through the set ups.

USDCHF - Bias is Bullish
Currently going through a retracement on the H1 chart. H4 Chart looks steadily bullish. Same with the Daily chart.

It is likely that price could touch 0.93426 or go lower to 0.93283 before going bullish again.

Placing LONG pending orders at both these levels is a decent entry. In terms of position size, let the first level be smaller lot while the second entry be a 1 Lot set up. Either ways, use caution. Stop loss should be 0.92789, yesterday's low.

GBPCHF - Bias is Bullish
Currently going through a retracement on the H1 chart. Price is expected to fall through to 1.41547 or in that region. Our target price is 1.42887.

Place LONG orders at or around the 1.41547 region. A definite confirmation would be 1.423 level.

EURUSD - Bias is Bearish
We expect EURUSD to drop to 1.29 region sometime mid March. Price is currently at 1.307 region. H4 shows a bullish Schaff Trend. So we must wait for the STC to turn bearish. H1 is also bullish, just crossing the 90 region on the STC.

Once H1 and H4 turn bearish, we are good to go.

Potential price entry would be 1.31161 or 1.3018. Our target price would be 1.33169. Its a bit too wide, but use judgement and place your stop accordingly. Yesterday's high was 1.31631, so this can be used a stop level as well.

If you want to grab a cup of coffee or do some errands, now is the right time. Expect some action towards the mid London trading session and definitely during the US trading session.

More to follow towards the end of the day.

GBPCHF H4 Chart, In Trade Analysis

The GBPCHF pair is also currently in a retracement mode. I've closed my trade and managed to get just 8 pips out of it. I'm to be blamed because I was too busy writing up stuff. Anyways, all is not lost. The GBPCHF Daily chart looks to be getting more and more bullish. The 4- hour chart is holding on and we are currently seeing a bearish retracement on the 1-hour chart.

Price could likely move to the 50% Fib for the retracement to end. However, i'll be looking keenly at the Schaff Trend Cycle in order to base my judgement. For those who missed this trade, TODAY is a great opportunity to enter LONG on the GBPCHF. Just wait for this retracement to end and once the STC turns bullish, we're off on our journey.

USDCHF Daily Chart, In Trade Analysis

This is a follow up to my trade set up on the USDCHF here. Overnight there was a decent movement since my entry at 0.93330 and price is currently at 0.93588. I moved my stops to 0.93530, locking in a total of 200 Pips.

Price is currently looking at a retracement, and can be clearly seen on the H1 chart. While I will wait for my stop to be taken out, I will be re-entering this trade as soon as the Schaff Trend Cycle switches to a bullish bias.

 

There could be a possible retracement to the 76.4% Fib and then price might get back to being bullish. Either ways, i'm happy with a 200 Pip profit and eager to ride this wave again. I'll be following up on this.

Possible entry could be at either 73.2 or if price drops a bit more, maybe a few pips below 73.2.

Fine tuning a trade - Wolfe Wave Trading system

I wrote an article on the Wolfe Wave Trading system. I mentioned that looking to the H4 chart is important in order to enter a trade that you might have missed. Below is the EURUSD chart which is a great example.

The EURUSD Daily chart. The Wolfe Wave set up shows a bearish pattern with price likely to fall.

The black arrows shows where the actual reversal happened. But for those who have missed, there is another point of entry. If you thought it would be great to ride this wave, then wait!! Look at the EURUSD chart on the 4 hour time frame.

We see another Wolfe Wave pattern that is formed. And this one looks bullish. The EPA on this chart shows a potential rise to 1.35424. So if you entered short blindly on the Daily chart, you would have got yourself in a messy situation.

The best entry under this circumstances would be to wait for a bearish bias to happen on the Schaff Trend cycle. Wolfe waves are not accurate all the time, and thus, it is possible that the Wolfe wave will fail on the H4 chart. But let's not 'assume' that to happen. The Schaff Trend cycle tells us that price tried to be bullish, but failed. (Look at the failed bullish cycle).

To be safe, we will place our entry on the EURUSD ONLY after the H4 Schaff Trend goes bearish.

EURCHF, H4 Wolfe Wave Set up

It looks like the CHF pairs are doing quite good in terms of Wolfe Wave patterns. Here is a 4-Hour chart on the EURCHF, which shows a nice uptrending move. So we go for a BUY order.

Entry: I'm sure you have missed the 23.6% Fib level entry @ 1.21968. But fret not, wait for the 38.2% entry @ 1.22678
TP: 1.23251
SL: Either 1.22436 or to be more safe (but more wide), 1.21968