EUR/CHF High 1 Buy Signal: A Successful Trade Explained
12.03.25 06:17A Simple Price Action Trade Explained: The EUR/CHF High 1 Buy Signal
Price action trading is a method where traders make decisions based on price movements rather than relying on technical indicators. One common price action setup is called a High 1 buy signal, which occurs when the price makes a new high after a pullback in an uptrend.
However, a High 1 is only reliable in a strong bull trend, especially during a spike—a sharp and sustained upward move. If the market is in a trading range or a weak bull trend, a High 1 signal is more likely to fail and should be ignored.
On March 11, 2025, EUR/CHF was in a strong bull trend and presented a textbook High 1 buy signal, which led to a successful trade. Let’s break it down step by step.
Step 1: Identifying the Setup
Before the buy signal appeared, EUR/CHF had been rising sharply since early March, forming a strong spike up. This indicated that bulls were in control.
On March 10, the price pulled back temporarily, reaching a low of 0.9490 before closing at 0.9539.
A High 1 buy signal occurs when the price moves above the previous day's high after a pullback. In this case, the high of March 10 was 0.9556. This meant that if EUR/CHF moved above 0.9556 on March 11, it would trigger a buy signal.
Because the market was in a strong bull trend, this High 1 had a high probability of success. If EUR/CHF had been in a trading range, the signal would have been ignored.
Step 2: Placing the Trade
A trader looking to take this trade would follow these steps:
1. Entry Point: The buy order is placed one pip above the high of March 10. Since the high was 0.9556, the buy order is set at 0.9557.
2. Stop-Loss Placement: A stop-loss is a level where the trader exits the trade to limit losses. In this case, the stop-loss was set one pip below the low of March 10. Since the low was 0.9490, the stop-loss was placed at 0.9489.
3. Target Placement: The target is set based on a 1:1 reward-to-risk ratio. This means that the distance from entry to the target is the same as the distance from entry to the stop-loss.
- Entry at 0.9557
- Stop-loss at 0.9489 (a risk of 0.0068 or 68 pips)
- Target = Entry + 68 pips → 0.9625
Step 3: Trade Execution and Outcome
On March 11, EUR/CHF moved above 0.9556, triggering the buy order at 0.9557. The price continued to rise, reaching 0.9650 at its highest point.
Because the target was set at 0.9625, the trade was successfully completed when EUR/CHF surged past this level.
This trade worked well because:
- The market was in a strong bull trend, increasing the probability of success.
- The buy signal was in line with the overall trend.
- The stop-loss was placed safely below the recent low.
- The reward-to-risk ratio ensured a balanced approach to risk management.
Key Takeaways
1. A High 1 buy signal occurs when the price moves above the previous day's high after a pullback.
2. A High 1 is only reliable in a strong bull trend (a spike). If the market is in a trading range or a weak bull trend, the signal should be ignored.
3. The stop-loss is placed below the recent low to limit risk.
4. A 1:1 reward-to-risk ratio helps manage expectations and balance potential gains with losses.
5. This trade was successful because the price continued upward after triggering the buy signal.
Understanding these basic price action principles allows traders to make clear, rule-based decisions without relying on complex indicators.
EUR/CHF Rallies to 0.9620 on German Fiscal Boost and SNB Speculation
11.03.25 12:51The FX market remains focused on a best-case scenario for the euro as the expected approval of the huge German fiscal spending plan in the Bundestag supports the currency. On March 11, 2025, EUR/CHF reached 0.9620, reflecting strong market sentiment for the euro.
At the same time, slower US economic growth pushes investors into risk-off mode, which boosts the safe-haven appeal of the Swiss franc.
However, speculation over the upcoming SNB meeting on March 20 adds pressure on the franc as market participants anticipate a potential rate cut to curb excessive strength. The interplay between these factors creates a dynamic environment, with bulls and bears vying to establish a clear trend channel.
Bulls seek to build a bullish channel that sustains the rally, while bears aim for a bearish channel that could reverse the gains. Policy signals from both the SNB and the German parliament now play a crucial role in determining the next major move for EUR/CHF.
EUR/CHF Approaches Key Resistance – What’s Next?
11.03.25 10:43With EUR/CHF reaching 0.9615 today, bulls are still attempting to push higher. However, the key question remains whether they can sustain the breakout. Resistance between 0.9570 and 0.9580 has already been tested multiple times. If EUR/CHF holds above this area and builds momentum, another attempt at breaking 0.9636 could follow.
If the market rejects these higher levels again, the risk of a pullback increases. The first support zone remains at 0.9490–0.9510. A drop below this range would shift the focus toward 0.9450–0.9460, with a potential extension to 0.9400–0.9420. The outcome of the current battle between bulls and bears will determine the next big move.s
Euro Jumps to 0.9636 CHF – But a Pullback is Coming
09.03.25 06:41
The rise of EUR/CHF to 0.9636 on March 6, 2025, was a continuation of the strong upward momentum that started on March 4, when the pair broke above 0.9450. This rally was driven by the announcement of a €500 billion infrastructure and defense spending plan in Germany, which boosted confidence in the euro.
On March 5, the pair surged from 0.9454 to 0.9615, marking a sharp 1.7% gain. This was followed by an extension to 0.9636 on March 6 before EUR/CHF dropped back to close at 0.9510. The pullback suggests that the rally may have been overextended, leading to profit-taking.
The rejection at 0.9636 could indicate that the market sees this level as a short-term resistance. The sharp drop of 126 pips suggests that bullish momentum has weakened. Now, the key question is whether EUR/CHF can stabilize above 0.9510 or if further downside is likely.
