Here are the forex trade signals for October 30, with trades in the NZDCHF.
Trade direction and targets come from the 4-hour chart, while the entry is found using an hourly chart. The hourly chart is shown below.
NZDCHF Forex Trade Signal
The NZDCHF is channeling sideways since about October 23. This follows a strong move to the upside earlier in October. The early October rally puts our trading bias on the long side. The bottom of the channel provides an area to buy, as its been a recent support zone.
The trade is to Buy at 0.66045. Stop Loss is at 0.65716 and Targets are 0.7671 and 0.6735. This provides a roughly 2:1 reward to risk on the first portion of the position, and a 4:1 reward to risk ratio on the second portion.
The first target is intended to capture the bulk of the current price range. The second target is there to catch a bigger gain if the price breaks out of the range and continues the uptrend.
Assuming the trade lasts more than a day, since the higher interest rate currency (NZD) has been bought and the lower interest rate currency sold (CHF) the position receives interest credits (positive rollover) each night.
Chart times are in GMT + 3. Forex prices vary by broker, sometimes significantly.
If risking 1% per trade (recommended), if the main target is hit the reward:risk for that trade describes your percentage gain (for example, 4:1 means you make 4% on account equity).
If the price moves more than 50% of the way to target, start trailing the stop loss in to lock in a profit. Once the price is 50% of the way to the target drop down to a 30-minute chart and adjust the stop loss to just above the closest short-term resistance level if short, or just below the closest short-term support level if long. Continue to do this until either stopped out or the target is reached.
Alternatively, let the trade play out; it will eventually hit the target or stop loss.
Trading involves risk. This is for informational purposes only and is not trading or investment advice.
Disclosure: Author is short GBPAUD, and long NZDCHF per above.
Follow on Twitter @corymitc for more trade ideas.