USD/CHF Long - April 06 2008

Setup:
This trade was based on the Elite setup on 4 hour chart.

Reason:


This wasn't the regular Elite setup. The 3 EMA was already above the 34 SMA and the CCI was above 0. But the price was showing a pullback towards the 34 SMA. My entry was based on the assumption that the price would bounce off the 34 SMA and would move higher.

The candle at 2pm shows that we did infact bounce off the 34 SMA. The next candle moved higher confirming the bounce. I also noticed a divergance between the 3 EMA and 10 SMA confirming a strong bounce. I entered this trade a bit late than desired, but I wanted to confirm the bounce.

I entered the trade at 8:40pm at 1.01142. The stop was placed 50 pips away at 1.00642 and the price target 50 pips away at 1.01642. Finally little past mid-night at 12:20am, my taget point was hit.

There are couple of things I would have changed for this trade. First off, since this was a bounce and not a new entry, I would not have placed a 50 pip stop and target. I would have kept it at 20-30 pips even if it were a 4 hour chart. Next, I would have tried to enter this trade earlier instead at the end of the 2nd confirming candle.

Lots: 10
Entry (Long): 1.01142
Stop Loss: 1.00642
TP: 1.01642

Total Pips: +500
Total Profit: $491.88

Rating:
There is some room for improvement with this trade entry. I entered quiet late. I should have also reduced the risk by keeping my stop and target smaller. But once the trade was placed, it was executed to plan. Hence I will rate this 4 star.