Indicators used: just support and resistance levels
Trade Rationale: the head and shoulders pattern (see chart above) suggests that USDCHF will continue falling past the neckline at .8900. should it fall below this level, the previous low at around .8650 will probably be the next stop. i think the USD will continue to weaken, and that there aren’t many scenarios in which it will gain ground against the CHF over the next few days.
Trade Adjustments: stop to BE when trade is positive by 50 pips
By the way, since I am a complete newbie here and still learning from the Pipsology School, I didn’t have the guts to submit any trade setup for ‘Trade of The Week Contest’ because I firmly believe there are way more smarter guys here to do that job. But you know what, despite my limited knowledge somehow I managed to figure out this exact setup two days ago. Used indicators were Stoch (5,3,3), MACD(12,26,9), SMA(10) and SMA(20). Made e short order at 0.8964 and before the market closed yesterday night (I am at GMT+6), my profit was around 130 pips and counting. With a trailing stop set to 25 pips, I’m hoping to gain some more in the coming week. Let’s hope this trade will win in the vote too. Cheers.
