USDCHF Long for 70pipsTrade Setup: We're looking to go long (buy) the USD/CHF pair. This means we expect the value of the US dollar to rise against the Swiss franc.
Take Profit: We've set our take profit target at 70 pips. This means if the price rises by 70 pips from our entry point, we will close the trade and secure our profit. This level is chosen based on technical analysis, market sentiment, or specific support/resistance levels.
Stop Loss: To manage our risk, we’ve placed a stop loss at 40 pips. This means if the price moves against us and falls by 40 pips from our entry point, the trade will automatically close to limit our losses. This is a crucial risk management tool.
Risk-Reward Ratio: With a take profit of 70 pips and a stop loss of 40 pips, our risk-reward ratio is 1.75:1. This means for every dollar we risk, we aim to make $1.75. This is generally considered a favorable ratio in trading.