CADCHF Trade Analysis

System C's CADCHF trade reason



Gold arrow: Entry price

Red arrow: Stop loss price

Green arrow: Take profit price

Trade Setup:

CADCHF formed a channel in the hour 1 timeframe.

Trade Confirmation:

Price touched our channel


Trade Reasons:
1) Price touched top of the channel

2) Superb risk-reward ratio - 1:1.93



Take Profit Reasons:

1) Trend is suppose to fall from the top of the channel towards the bottom.

2) We have set our take profits level slightly above the current support.

Stop Loss Reasons:

1) Stop loss level was set to be above the key resistance level .

2) If price break beyond the resistance we have to get out the trade.

3) We cannot risk not getting out of the trade because price might to the new high which will place us in a unfavorable situation.