[TW] 4-20-2012 - NZD/USD Long by imtrader (new to the forums!)

Trading Discussion
1

Long or Short: Long

nzdusd.jpg700×287 22.1 KB

Entry Point: Market (.8130)
Stop Loss: .8030, below next support
Profit Target/s: 200 SMA or, if it has momentum going up, .8300
Reward-to-risk Ratio: Possibly 1.7:1 (could be more)
Risk percentage: 1%
Indicators used: 200 SMA
Trade Rationale:

I’m a range trader so when setups like this appear, I just take them. I don’t pay attention to news much, so NZD/USD is a prime choice for me. Little news and price tends to range a lot.

Just buy at the bottom of the horizontal channel and aim for the top of the range. I placed my stop below the second support that I pointed out in the chart.

2

if you take the 200 SMA as the profit target, wouldn’t that resultin a reward-to-risk ratio of 0.7? If you assume the SMA will be at around 0.82, then the potential profit is 70 pips and the SL is 100 pips, so 70/100 = 0.7. i watched this possible trade as well, but decided the RRR is too bad.

cheers,
stefan