Forex Trading: USD.CHF, Breakout Day?

by Joe Oliver, Forex Trading-Pips

Forex Trading: USD.CHF has traded in a tight consolidation for the past 5 days. Monday trading session produced an NR7 (narrowest range of the past 7 days) and inside day raising the possibility of a breakout move Tuesday.

One way to play the move is to bracket Mondays high / low range with buy / sell stops 1 pip above / below. Exit is either a loss on the opposite side of the bracket, or if the position moves favourably units can be scaled out using limit orders with the final unit stop eventually moved to break even for a risk free longer term trade.

Forex Trading, CHF daily bars

Forex Trading, CHF daily bars