We have, what we think, is a very simple and effective system to trade the USD/CHF pair. The patterns that we refer to later started appearing in 2008, and as with any system, probably has a limited life. Once the market conditions change, this system may no longer be valid. You need roughly 1 minute per week to determine the direction, and perhaps another minute to enter the trade.

This system works only with MT4 brokers that show the Sunday trading. We use IBFX for best results; You just need them for the charts, and you can enter the trades with any broker, of course. THIS IS VERY IMPORTANT FOR YOU TO RECOGNIZE THE ENTRY AND DIRECTION.

On the Daily USD/CHF chart, using only bars, it is easy to see a pattern. Make sure you use the grids too. Open the daily chart and confirm that you can see it. You will see that every week, the pair moves in what we call clusters.

Between each cluster, you will see a DWARF bar - the Sunday bar. It is so small because there is only a 2 hour Trading window before midnight GMT.

Identifying the DWARF bar: This is almost always the Sunday bar. It may show up, very rarely, mid week. But if you will check, that dwarf would show up after a market holiday. Please ignore the mid week dwarfs for this system.

The Dwarf is, obviously, the shortest bar at the end of 5 previous bars. It should NEVER be more than (1) box height of the grid boxes. It almost never moves higher or lower than the high or low of the adjacent bar (previous bar)

LONG ENTRY: The Dwarf OPENS below the previous CLOSE. This you will see in the very first second of Sunday opening. BUY immediately. Take Profit = 100 pips. Stop Loss = 150 pips.

SHORT ENTRY: The Dwarf OPENS above the previous CLOSE. SELL immediately. TP = 100 pips. SL = 150 pips.

RECOMMENDED TRADE SIZE: Restrict each trade to no more than 2% of your account size per trade. Eg. 10K account would enter 0 .14 lots rounding down the lot size. 2% of 10K = $ 200. Standard pip = $ 9.20 Trade entry size should be 0.14 lots 0.14 x 9.20 x 150 = $ 193.20 = max. Potential loss

DISCLAIMER: This method is neither fool-proof nor is it 100% accurate. We could be wrrooonnngggg!!!! Trade only money you can afford to lose. Leveraged trading is highly risky, and is not recommended for all. As with any system, it is valid only for specific market conditions.

Please refer to the attachment below, which shows the last few trades that we have traded live. The green portion of the box is the gains and the red shows the DD up to 150 pips SL.

HAPPY PIPS TO US ALL.

Pintol2

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