The markets seem to be trading in wide ranges lately. When there is a lack of clear strong trends, look trading opportunities on the pairs that tend to range.
The CHFJPY has been in a horizontal range for the past 90 days. The range high is 88 and the range low is 85. Additionally, a long term resistance line is meeting at the 88 level providing a confluence of resistance on the pair.
The Trading Opportunity
At the end of today, prices were successful in touching 88.00. Since the average daily range of the daily candles is 80 pips, entering a short trade with a stop near 88.80 is the trading plan. Look to take profits at twice the distance to the stop. This provides us with at least a 1 : 2 risk to reward ratio. That means we would place the Take Profit level near 86.30.
Inside DailyFX Plus, you will find archives of the live strategy sessions the DailyFX EDU mentors offer. This trade and an opportunity on the AUDNZD were discussed today.
You will need a live FXCM account username and password to view. Once you login in with your live account username and password, scroll down to the bottom of the web page to view the course archives player…”Trading Long Wicks Feb 18”
Email me at instructor@dailyfx.com if you are interested in temporary access to the archive player.
