Student’s Question: Here is my trade plan. It is USD/CHF, buying on the dip. Do you agree?
Power Course Instructor’s Response: Well done... Buying at support in an uptrend....good work. This is exactly the kind of straight forward trading set up for which we would be looking. We take note of the trend on the chart which is definitely to the upside on this USDCHF Daily chart. Next, we draw support and resistance lines to determine the range in which the pair is trading. Since we would only want to take long positions in an uptrend, we would wait for price action to come down to support. Once the candle respects support and closes above it, we would take a long position and place our protective stop about 10-15 below the lowest wick that penetrated our support line.