Confluence on USDCHF! – Trade Closed

Trade Closed: 2010-08-01 22:30

PoD Chart

And I thought I was going to get a win! My trade was going so well at first, with price touching my entry price and bouncing upwards. Sadly, that move was short-lived, as price immediately dropped like a brick, consequently hitting my stop loss.

Stopped out at 1.0430 for -120 pips / -1.00%

Sigh, when will I get out of this trading rut? I don’t know… but I guess I am still hopeful because I know that losses (as well as wins) are part of trading. For now, I just need to readjust and reevaluate. It’s a new month, so hopefully things turn around for me this August!

Trade Idea: 2010-07-27 23:29

PoD Chart

Looking at USDCHF’s 4-hour chart, I noticed that the pair already broke above the neckline of those double bottoms. After that strong breakout, it looks like the buyers need to take a break. If the pair pulls back, it could find support right around the 50% Fibonacci retracement level, which is nearly in line with the broken neckline.

What a coincidence! That level also lines up with last week’s high, this week’s open price AND today’s lower bound ATR! I better place my entry order there then!

Yes, yes, I know my entry is still a bit far off, but I think it could trigger as two very important economic reports will be released today. Of course, I’m talking about the publication of the durable goods orders report and the Fed’s Beige book. These two reports are biggies, which could just move USDCHF enough for me to get in on the retracement.

Here’s what I’ll do:

Long USDCHF at 1.0550, stop at 1.0430, take profit at 1.0675

I’ll be going to the beach this weekend, so I’m crossing my fingers on this trade! Please, please, please let this trade play out nicely! I don’t want to go on vacation with a loss!