Sunday, January 18, 2015

GBP-CHF Post Technical Analysis

MACD Settings:- First EMA = 12 | Second EMA = 26 | Signal EMA = 9
Stochastic Settings:- Period = 5 | Average Period Fast = 7 | Average Period Full =7
Bollinger Bands Settings:- Average = 20 | Standard Deviation = 2

Once i have witness it myself the unpredictable thing that happens in Forex history. After the swiss bank release its cap against the European currency any of the currencies are all affected by the move. As you can see the GBP-CHF has gone down big time. Anyone who have traded any currencies rate against the swiss franc must be devastated. It falls by 2825 pips which is equivalent in a matter of 12 hours. Drastic jump is just within 1 hour gap. That is a lot of losses if anyone have traded this one.

There is nothing predictable in this case some people probably is making money out of it but there are many others could have loss so much money. This point have prove to me that how dangerous the forex market can be - anyone who is struggling psychologically must have loss their mind completely to see this and will not be able to accept the fact of what happen. A big account could loss millions if not billion of dollars from this event and this have remind me once again not to predict the unpredictable. The volume of the movement is simply too much to accept.

No matter what knowledge you have mathematically, fundamentally, historically, etc you will never win this one. It's purely unlucky and the most unfortunate event in the forex trading. And it's a pity to those who have loss so much