CAD/CHF -- 11/26/2018
The final week of November had a lot of fundamental data coming out, making the favourite pairs of TheTechnicalTrader123 virtually un-tradable. At KTFRX we analyze all pairs and thus we were able to catch a fantastic trade on the CAD/CHF pair. CADCHF had no expected news until Friday, November, 30th.
In regards to the trade itself, as we could see on the daily time frame that price was range-bound for quite some time until a strong 140 pip movement was made to the downside. With every impulse comes profit-taking. And although the bulls made a strong pullback there was no break of the original structure that showed major momentum for the bears.
Price showed exhaustion on the Daily, 4-Hour, and 2-Hour time frames around the 0.7600 area meaning we have had acceleration (downward impulse), followed by deceleration (upward relief). After the deceleration it can be expected that another impulse to the downside will happen.
The minimum risk to reward ration was a 1:2 and ended up growing to a potential 1:4 if the trade was held to take profits beyond take profits 1, and 2. Therefore, based on investment approaches, this was our trade of the week.
Targets reached, clients profited, month ended on a positive note as always.
TheTechnicalTrader123 is the head analyst at KTFRX and a student of thatfxtrader. If you wish to learn how to trade on your own, head to www.thatfxtrader.com.