CandlemindLog in

2011-09-06 · USD/CHF

The Swiss Wall

The SNB sets a floor of 1.20 per euro

MarketUSD/CHF
Biggest move+10.0%
Extreme at (UTC)17:30
Difficulty★★★★☆
0.777200.799750.822310.844860.86741+10.0%Decision pointWhat happened next →

What happened

On 6 September 2011 the Swiss National Bank announced it would defend a minimum of 1.20 francs per euro "with the utmost determination".

USD/CHF jumped about 9% within the session: a central bank can reverse any trend in a single statement.

How to survive a day like this

  • Check the economic calendar and the news before you trade: these days were announced or brewing for hours.
  • Reduce your risk: on extreme days, 0.5% per trade is plenty, because stops can slip far beyond where you placed them.
  • Do not fight the first move. The first candles of a shock set the direction for the rest of the session more often than not.