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Aaand the votes are in! We received two brilliant ideas, but there can only be one winner. Drum roll please! The winner of the Readers’ Choice: Trade of the Week Contest for May 16 – 20, 2011 is none other than littlebopip!

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

USD/CAD, Daily
USD/CAD Daily Chart

Long or Short: Long

Entry Point: .9780

Stop Loss: .9680

Profit Target/s: .9980

Reward-to-risk Ratio: 3:1

Risk percentage: I’ll risk 1% on my first position at .9780 then, if the price goes my way, I’ll add another position at .9880. I’ll risk another 1% on this one but I’ll move the stop from my initial position to .9780 when I add.

Indicators used: RSI (14)

Trade Rationale: There’s an inverse head and shoulders pattern on the daily chart and I’m waiting to go long if the neckline (.9700 area) breaks. There’s also a downward trend line on that time frame so I set my long order above the trend line in case it breaks. Read more…

Trade Adjustments: If my trade doesn’t get triggered, stopped out, or closed at .9980 before the end of the week, I’ll manually close my open orders/trade on Friday. If the Canadian CPI and retail sales beat expectations then, I’ll close my open orders/trade manually also.

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!

Okay, that concludes our first ever Trade of the Week Contest. Put your thinking caps on for this brand new week and keep your eyes peeled for ’em sexy setups guys! Don’t be shy to submit your trade ideas. Who knows, it may be your name that I’ll be proudly announcing next week!