A. EURUSD, Weekly. The basic premise of my trade is to use an oversold stochastic crossover on a long-term chart.
B. Long
C. Entry Point: 1.3550
D. Stop Loss: 1.3100 (bottom of candle)
E. Profit Target/s: 1.4800 (near 52-week high)
F. Reward-to-risk Ratio: Between 3.8:1 to nearest tenth (+1700 on 450 loss)
G. Risk percentage: Because it’s long term, I’m going the full whack - 5%.
H. Indicators used: Although my chart uses GRaB candles (thanks to the lovely Raghee Horner :5: ), for this trade I use a stochastic oscillator (14,3,3).
I. Trade Rationale: The Eurozone has taken a kicking, and I think the time has come for the EUR/USD’s annual uptrend. Also on long-term charts, stochastic oscillator crossovers of this kind have won me a lot of pips.
J. Trade Adjustments: In reality I would go for this trade straight away, earlier than my quoted entry point. However, patience is the key and don’t adjust your trade just because of a temporary kink in the trend!