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Wskxw.com is dedicated to providing quality information on the subject of Forex Trading for beginners, and in particular, on the various trading systems, and brokers, and tools.The Swiss just intervened in their currency! Glad I had my entry order in, waiting on it. I woke up the next morning and I was filled on the order and was up over 260 pips! That’s huge for a pair that typically moves about 80 pips in any given 24 hour period! Check out what intervention [...]


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The Swiss just intervened in their currency!

Glad I had my entry order in, waiting on it. I woke up the next morning and I was filled on the order and was up over 260 pips! That’s huge for a pair that typically moves about 80 pips in any given 24 hour period!

Check out what intervention looks like on the 5 minute chart below. Click on the chart to enlarge it.

swiss-intervention1.JPG

You can see why it’s important even for technical traders to pay attention to the comments of central bankers. When they speak, they’re usually not bluffing. They will send out some warning signals to the markets ahead of time generally, as they express their disgust for where the currency is…however, if that’s not heeded by traders, they will soon put them in the “House of Pain”.

Of course, since I was long the pair as I anticipated the intervention, I’m loving it. But imagine the guys on the other side of my trade that had 260 pips of loss in about an hour! Whoa! That’s huge!

It appears that the Swiss have successfully reversed the downtrend in the EUR/CHF pair. This will cause them to gain the support of “trend following” systems that the big hedge funds run. That’s one reason why the Swiss sold francs furiously yesterday, to ensure they got above the “downtrend line” on the daily, 1 year chart.

This is a monumental moment for the Swiss! Now, if this trend reversal sticks…it will bode much better for their economy going forward.