CAD/CHF has made a bullish impulse followed by a 50% mean reversion from which the price has held and pushed higher to form a support structure, keeping the bullish trajectory intact.
Bulls can enter at support and seek a push higher on the shorter-term frames.
The following charts display the price action and motive for a long position for a 1:2 risk to reward day trading set-up.
Note, the criteria of the trade is to manage the position on a 15-min time frame and move stop to breakeven at the earliest opportunity (explained below).
The trading strategy has a 60% win rate, meaning risking a low percentage per trade, using breakeven targets and setting a minimum of a 1:2 risk to reward ratio are essential for the strategy’s success.
As illustrated on the 15-min chart, the price has stabilised at a 50% mean reversion