By Rob Colville on September 27, 2013 in
We have just exited end of day (or rather, end of week) forex signal CADCHF. This is a cross currency pair which has usually been profitable for us and thanks to our price action set-up in the form of a bearish pin bar reversal on the weekly timeframe; we were able to bank 4.08% after a two week long run.
For our forex signal CADCHF (sell), we had a confluence of factors which supported our decision to sell, and on the 15th September we had all of our forex strategy’s rules for entry fulfilled. So, we entered our orders with our best forex broker.
On the 15th September, we spotted a bearish pin bar reversal on the weekly timeframe which rejected the 0.9035 horizontal level. This horizontal level also overlapped almost perfectly with the 0.382 Fibonacci Retracement (we took this from the beginning of the move, from the15th May to the most recent low of the 27th August).
Moreover, on the hourly timeframe, the completion of a triple top formation meant that our entry (just under the low of the previous week’s pin bar reversal) correlated with the break of the neckline of this short-term reversal pattern. Thus, we had timeframe correlation on the weekly and hourly chart.
From a longer term perspective, our forex signal for CADCHF was inspired by itse downward cyclicity on the weekly and daily timeframes (making key lower peaks and lower troughs). This, combined with the fact that the price-action set-up was in a phase of extension, gave us a strong sell bias
We send out the forex signal: CADCHF to clients on our forex training course and placed this sell order on our broker. The next day we were triggered into the trade which we stayed in for the next two weeks until our target was hit.
As the trade hit target within two short weeks as a result of a fortnight which was dominated by sellers, we did not have to undertake any trade management procedures like we would otherwise. We were able to exit the trade on the 27th September.
For those who followed the forex signal CADCHF, clients would have made a 4.08% return on their trading account. This means that those who have $10, 000 accounts made $408, clients who have $100,000 accounts made $4,080, and so forth.