H&S Trade Diary: 1- 0
The Head and Shoulders strategy outlined on Wednesday is off to a good start:
+2.9% / 195 Pips!
First trade was on USDCNH (US Dollar v Chinese Yuan) – I noticed a Head and Shoulders pattern on the four hour chart:
Price was already below the ascending neckline, so I drilled down to my hourly chart to look for a close:
The breakout had already occurred – there was an hourly close below the neckline at 11am Sydney time. After calculating stop loss and target, I entered short at 12:42 PM. Entry level was 6.5440, with a stop loss above the right shoulder at 6.5570 and 1.5x take profit target at 6.5245.
The trade reached our 1:1 break even trail level over night – I trailed stop to break even at around 6am this morning, but trade was already very close to hitting target. This was a great trade – target was hit in under 24 hours with minimal whipsaw.
Points Of Interest:
Stop could have been a lot tighter – trade only ever moved 40 pips against entry point (stop was 130 pips). I’ll continue to observe future trades and see if there’s a pattern there, or whether this was just a stroke of luck.
OG H&S: 1
Tune in for the next trade … Good to start things off with a winner, but we’ll need to win more than 40% of our trades for a profitable strategy!
Oscar Goullet – @FXtechs
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Australian Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, prices or other information is provided as general news and marketing communication – not as investment advice. Consequently any person acting on a Forex live account it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX on the MT4 platform, shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.