Winner: Trade of the Week for May 23 – 27, 2011

Aaand the votes are in! Drum roll please! Five brilliant ideas, but one stood out from the rest. The winner of the Readers’ Choice: Trade of the Week Contest for May 23 to 27, 2011 is none other than GBQ889!

Check out his trade idea that let him bring home the bacon this week:

NZD/USD, Daily
NZD/USD Daily Chart

Long or Short: Long

Entry Point/s: .7950 and .8050

Stop/s: .7750 and .7850

Profit Target/s: .8500 and .8750

Reward-to-risk Ratio: 5.5:2 (lower entry, 1st t/p level) to 7:2

Risk percentage: 0.5%

Indicators used: Stochastic (14, 3, 3), MACD (12, 26, 9), Tick volume

Trade Rationale: NZD proved resilient post-earthquake (1000 pips in 45 days, March to May). Positive economic news out of New Zealand. Read more…

Trade Adjustments: Buy on both sides of .80. May even consider purchasing at higher levels if further information/patterns emerge and support the bullish case for NZD. Looking to trade this over the course of Late May through June (30-50 day term). Will abandon idea if events or technical trends emerge that send NZD back below .7750 or clear bullish trend does not emerge by 6/10/11.

Congratulations! Every trader will now freeze in awe at the sound of your name. Okay, maybe not. But don’t be too surprised if someone asks you for an interview or an autograph!

For those who didn’t win, don’t give up! Put your thinking caps on for this brand new week and keep your eyes peeled for ’em sexy setups! Who knows, it may be your name that I’ll proudly be announcing next week!