[TW] 8-22-2011 Long USD/CHF by littlebopip

USD/CHF: 4-hour


Long or Short: LONG

Entry: Go long on .8030, 30 pips above the .8000 level.

Stop loss: 100-pip trailing stop

Profit target: .8500

Reward-to-risk ratio: 5:1 or better if the move is really strong and I decide to add a position every 100 pips. Can be maximized to a 15:1 ratio if the market conditions are good.

Risk percentage: 1% for every position

Indicators used: RSI

Rationale: SNB has been trying again and again to intervene in the markets but their recent attempts were unsuccessful. I believe they will eventually come up with a plan to push the franc down and this will trigger a strong break above .8000.

USD/CHF has also been making higher lows and formed that ascending triangle/bullish pennant on the 4H time frame and it could break to the top as continuation of the uptrend.

Have you also considered .7900? I’ve seen it as an important pivot point.