[TW] 2012-08-31 Long USD/CAD by littlebopip

Trading Discussion
1

Pair: USD/CAD

Time frame: 4-hour

Long or short: Long

Chart:

usdcad.jpg700×304 21.1 KB

Trade Rationale:

There’s a double bottom pattern on the 4-hour time frame and I’m looking to go long above the .9950 neckline. The pattern is 150 pips in height so I’ll be aiming for the same amount. I set my stop at 50 pips for a 3:1 reward to risk ratio.

Entry: .9975

Stop: .9925

Target: 1.0125

2
  • This pattern is NOT 150 pips in height but only 107 pips from 0.9842 - 0.9949
  • So your r:r is not 3:1 but a little over 2:1
  • Your target is in the middle of air with no consideration of resistances
  • Most likely there will be a considerable pull-back at the resistance of 1.0077

And in general, to issue a “trade of the week” plan for next week hours before the results of Jackson Hole are known is not very smart in my opinion.
Everything could change in an instant just a few hours from now.

3

@littlebopip
Like it that you’re brave to present your idea

@whale
Thanks for the analysis, appreciate it

4

And it did change. You might win the contest but your trade plan is a loser.
Your entry point is 119 pips away from where we are now. And your target is 269 pips away.
All the result of submitting your trade too early.

5

Guys, I think we are all submitting trades too early just for the heck of submitting.
The only good think out of this weeks trade ideas is the charity that Babypips will do.