***I submitted this late last week, so I am resubmitting
A: Currency Pair: USD/HKD (Timeframe: 4 weeks)
B. LONG!
C. Entry Point: 7.75250
D. Stop Loss: 7.74622
E. Profit Target/s: 7.83000
F. Reward-to-risk Ratio: Risk is VERY low (63 Pips), Reward is VERY high (775 Pips)
G. Risk percentage: 5%
H. Indicators used: I didn’t go crazy with indicators on to come up with this trade. A quick peak at the long term chart (since it’s inception in 2007) and it literally SCREAMS at you! This pairing has NEVER dipped below its support level…never…ever!
I. Trade Rationale: Again, just look at this chart. I place my trade at the low point of its lifetime trading range. This low point has been tested twice before where it immediately shot up, and once where it stayed (but did not dip below) the support level. I’ve actually never seen such a strong support level…ever! But, just to be on the safe side, i have my stop very tight…right below the lowest point. If this guy dips below…i want out, and my trade falls apart. But…it has NEVER happened before…so chances are, it will not happen this time either!
J. Trade Adjustments: The only thing i would adjust in this trade is the length of time i am willing to hold it. If it shoots up very quickly, i might get out to take some profits, hoping to get back in at a lower price after a retracement. :45: