Today’s trap in particular that we’re going to review is called the Trap Break Pullback, which occurred in the area 0.6645 to 0.6579 during the very first days of 2016. As those support traders were buying, believing that #NZDCHF will continue higher as it had done historically, they got a shock as price drops through the level strongly. Traders holding those positions will likely now be bailing out at break even, creating an opportunity for us to get onboard.
Should price give me a trigger around the 0.6580-level to 0.6560-level, this pair is interesting to the downside. Currently, the New Zealand Dollar is struggling because of commodity prices worldwide and the Swiss Franc is a safe haven play. Given the risk off environment we’re in, this trade makes sense.
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José Ricaurte Jaén is a professional trader and Guest Editor / community manager for tradersdna and its forum. With a Project Management Certification from FSU – Panama, José develops regularly in-house automated strategies for active traders and “know how” practices to maximize algo-trading opportunities. José’s background experience is in trading and investing, international management, marketing / communications, web, publishing and content working in initiatives with financial companies and non-profit organizations.
He has been working as senior Sales Trader of Guardian Trust FX, where he creates and manages multiple trading strategies for private and institutional investors. He worked also with FXStreet, FXDD Malta, ILQ, Saxo Bank, Markets.com and AVA FX as money manager and introducing broker.
Recently José Ricaurte has been creating, and co-managing a new trading academy in #LATAM.
During 2008 and 2012, he managed web / online marketing global plan of action for broker dealers in Panama. He created unique content and trading ideas for regional newspaper like Capital Financiero (Panamá), La República (Costa Rica), Sala de Inversión América (Latinoamérica) and co-developed financial TV segments with Capital TV.
He is a guest lecturer at Universidad Latina and Universidad Interamericana de Panamá an active speaker in conferences and other educational events and workshops in the region. José Ricaurte worked and collaborated with people such as Dustin Pass, Tom Flora, Orion Trust Services (Belize) and Principia Financial Group.