AUD/CHF starting the month right!
So we had the first trade of the month this morning and it went perfectly. The set up was a textbook pivot play using multiple timeframe analyse to highlight the opportunity and execute.
Firstly, you can see on the chart that the Daily (top left ) has been in a bearish trend overall and recently pulled back in to the 50 EMA region before rejecting perfectly. The price action as always tells the story before yesterdays engulfing candle giving the clear selling signal.
Dropping down to the 4 hour (bottom left) we begin to get a clearer picture of the selling pressure as we made a series of lower highs and lower lows before breaking below the 50EMA once more and retesting perfectly inline with the Daily pivot level.
The story is very much the same on the 1 hour (bottom right) and it falls perfectly inline with the other timeframes we have analysed with the break and retest of the 50EMA that also lined up once more with the Daily pivot. We can also apply a Fibonacci retracement tool here which gave a very nice pullback to the 50% level.
This is the sort of level of confluences that you want to have when looking to achieve a high strike rate in terms of winning trades. It’s just simple probability that the more you can have ticked off in your favour the more likely the trade is to play out as expected. It’s about trading well not often.