Possible short on EURCHF for next week
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I have been working on my own indicator called FICO (FX Index Curve Oscillator). It seems to perform well in backtesting and as a way to engage in forward testing, I am posting this idea.
Basically it works by making our own DXY-like index for each currency, then plotting its rate of change. By looking at relative strength and weakness with each one, we can find pairs and direction to trade.
Using this indicator, it shows that the EUR is about to flip negative, and the CHF is about to flip positive. Therefore, we want to short EURCHF to be on the right side of both of these tickers.
But we're not there quite yet. We need another candle or two for the confirmation to happen (eg we might get another green candle with a large wick) so we don't want to enter yet and risk getting stopped out. If the trade works out exactly as planned (eg entry at 0.97719 and hits 4x ATR level), then this trade would be worth 180 pips.
Let's find out next week!
Basically it works by making our own DXY-like index for each currency, then plotting its rate of change. By looking at relative strength and weakness with each one, we can find pairs and direction to trade.
Using this indicator, it shows that the EUR is about to flip negative, and the CHF is about to flip positive. Therefore, we want to short EURCHF to be on the right side of both of these tickers.
But we're not there quite yet. We need another candle or two for the confirmation to happen (eg we might get another green candle with a large wick) so we don't want to enter yet and risk getting stopped out. If the trade works out exactly as planned (eg entry at 0.97719 and hits 4x ATR level), then this trade would be worth 180 pips.
Let's find out next week!
Dagangan ditutup: sasaran tercapai
Not only did this hit our TP level, it went as far as 4x ATR in our favor. Big win!
Penafian
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