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Most of the CHF crosses are showing this pattern

You know that I don’t specifically trade into NFP. In fact, it’s a known fact that I don’t like to open positions into NFP.

A side note though, somehow most USD seems to be pointing up, with USD strengthening.

That’s the reason why I posted USDCHF, but again coming into NFP, prefer to let it break it’s resistance as a confirmation.

 

This caused me to investigate into other CHF crosses and found CADCHF.

Please also remember to apply the trade process. It helps your line of thoughts.

Tflow® Trade Process

  1. How to find trades
  2. Preparing high probability setups
  3. Pulling the trigger
  4. Managing the trade
  5. Locking and exiting the trade

Trade Process 2: Preparing setups: CADCHF – healthier vitals

Our steps are very clear. I always look into nBox for a helicopter view.

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H4 boxes don’t seem very nice

 

Hang on, wait….what’s about HTF?

Seems supported by F6, pending week close to confirm WR.

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HTF level, supported by F6, pending week close to confirm WR

Big 1234, but inside it are complex retracements

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What’s this? 1234 with complex wave. Hate it? No, I love it

So how do we treat such complex retracement?

In a complex retracement is actually a series of downtrend (lower high and lower low). Just make sure mathematically the trend is broken when price close above the largest retracement. In this case, CADCHF did a H4 (H4 only) close. However, I’m sort of happier because it also close above the green line (around 7350) historical resistance (which now is a support).

What is not good, is there’s no HTF close.

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CADCHF trend change and HTF levels

 

Trade Process 3: Pulling the trigger

I’m an advocate of HTF close. In BP class, it’s always “SLOW IS GOOD”. So ask me a thousand times, I’m looking at a week close above 7370 (pt3) since already miss out the WR entry.

However for some who want an earlier, faster entry, then a spike/retracement (maybe during NFP) to mark support (around 7350-7370) might be a tight SL, low risk point.

Will update again when there’s a week close.

2015-10-02_19-26-03 cadchf5

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