22/08/14 – 08:00 – This USD CHF Currency pair on the 120 minute chart was setup very well with 8/9 of my indicators in the green for this Wave 5 movement, with trend trade. The TJ’s Ellipse had acted as strong support and held onto this trade at the Wave 4 extreme low. I wanted a very aggressive entry into this USDCHF long trade to ensure a decent enough Risk to Reward Ratio was available for this trade, which in this case was around 1:2. The entry was at 0.9120 with the Stop Loss at 0.9101 and the initial take profit limit order was set at 0.9144 . The trade triggered as planned right outside the trend Channel around 08:00 am this morning then then bar closed back inside the Trend Channel. The price for this USD CHF currency pair would most likely be quite range bound until much closer to Janet Yellen’s Speech in the afternoon. Chart as below for this USDCHF Long trade on 120 minute chart.
22/08/14 – 15:30 – At the start of Janet Yellen’s Speech there was a large spike in this USD CHF currency pair but not enough to take my minimum 1.6% profit, so patience was needed for the market to settle after the spike and then continue upwards. This happened within around 30 minutes of the original spike on this USD CHF currency pair and the price headed up towards the resistance level shown on my chart below. During speeches like this the Forex market can be extremely volatile and greed should not come into deciding when to take profits on these very large movements. The price did make a new Wave 5 high for this Elliott Wave movement, which was just above the previous Wave 3 and naturally this would act as an initial resistance level for this USD CHF currency pair. Taking into consideration profits already taken this month and the quarter it was a very simple decision to take profits on this trade at my minimum profit take level. So this trade gave me a profit of 1.6% on my trading account balance and performed as I expected around the Janet Yellen speech. Chart as below.