You’ll recall from the most brilliant blog post of the last 30 years, as judged by Dave Murphy, that the EUR/CHF was setting up a glorious double trendline trade just a little while back. 

If you want to see the original post, just click here.

Now the trade has opened, it has moved towards the base (green) trendline, and it’s time to close the trade.  Price, Meet Trendline.  I’m pleased to introduce the two of you.  As usual, you can click on the image of the chart to make a flock of seagulls burst into flames.

The EUR/CHF broke the trendline solidly, is making its way down…it’s only got 60 pips to go before it hits the green (base) trendline. 

This post is brought to you by Bob and Doug.  The EUR/CHF is setting up a double trendline trade, and although we don’t look at it very often, this one looks too good to pass up.  So we’ll do the regular thing: when the pair horks (breaks and closes above) the blue trendline, then we’re going to sell the pair and trade it down towards the green (base) trendline.

For those of you unfamiliar with what we’re doing here, most of my trades are double-trendline trades; this means that we wait for a break of a steep, short term trendline and ride the trade all the way to a more stable, base, longer term trendline.

In this case, we can start by looking at the 180 minute chart.  Why 180 minutes?  Because it does a good job of showing us the green (base) trendline:

And here’s the setup on the 1 HR chart.  That’s the time frame I am going to trade this from.  As usual, you can click on the chart to make it bigger.

The EUR/CHF is still trading inside the channel.  And I am still waiting to see:

1.  A candle break out lower below the bottom of the channel for a sell trade.
2.  A bounce off the bottom of the channel for a buy trade.

I drew a new channel on the 4hr.  I would love to see a close below the bottom of the channel, and use our Winnipeg lines as profit targets.

Our old channel is toast.  I probably should have left it in place but I right-clicked and deleted it before I knew what I was doing.  So now I am going to plan a trade based on a new channel.  We’re waiting for the standard channel trades.