Trade Update - CHF/JPY Long CLOSED

Update 03-10-08 12pm:
As expected this position went against us and I decided t0 cut my losses and close it for a -50 pips loss.

Total Pips: -150
Total Loss: $150

What Went Wrong:
Couple of things went wrong when I entered this trade. First the stochastic was very close to overbought terriroty. You i deally want the stochastic to rise form oversold terriroty and show a definite upward trend to minimize risk. And next, the RSI was also in overbought territory. These two factors indicate that we are probably close to the top, and there isn't much room to the upside. So this was basically a bad call.

Update 03-09-08 9pm:
Its been 3 days since I opened this position, and the price hasen't moved much for this position. As of now, I am down -27 pips, and there seem to be significant resistance to the upside. Or I should rather say, the upside is limited. The signals are still valid according to the OzFX system, so I am going to stick with this position for now.

The Trade:
Got this signal in the OzFX system. The AO & AC are green and the price is above the 200 SMA. Even the stochastic is trending up. The RSI is however hooking downward a little bit. Lets see if I have entered the trade at the wrong time.

The other consideration when entering the trade was the chart pattern. Looking back, we can see there is a up trend followed by a small consolidation period. And this is followed by another up trend. So we may currently be in one of those consolidation period just preceding the up trend.



Lots: 3
Entry (Long): 100.35
Stop Loss: 99.35
TP1: 100.85
TP2: 101.35