FX:NZDCHF   New Zealand Dollar/Swiss Franc
201 6 1
NZD/CHF has formed a Head and Shoulders pattern, it broke off the neckline earlier this week and seems to be heading for the usual Head:Neckline distance.

Entry to go long will be at point C of the second AB-CD             pattern, which is also the support neckline, at price 0.7260.

Target to take profit would the Head-Neck distance and also the 2.24 CD extension at around

Keep an eye on the 3 indicators, wait for all three to reach the Overbought zone, which should fall around around the entry price anyway.

Good luck.
RedStaR
3 years ago
Target reached faster than I expected, chart confirmed.
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KK78 PRO RedStaR
3 years ago
what stops do use?
sps
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KK78 PRO KK78
3 years ago
you*
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RedStaR KK78
3 years ago
Typically I place tight stops, because I usually enter the markets at critical points, where market will either go in my direction as expected, or start going the other way, thus invalidating my plan and hitting stop loss.

In this instance, price should went bullish as it broke out of the neckline, so a stop loss would be put just under the neckline, typically 10-20 pips depending on currency volatility. Giving a Risk:Reward ratio anywhere from 3:1 to 10:1

I generally use a R:R of 3:1 on daily trades with 60 TP - 20 SL.

And sometimes 10:1 for big trend reversals at 150 TP - 15 SL
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RedStaR RedStaR
3 years ago
Reward:Risk ratio *
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KK78 PRO RedStaR
3 years ago
Thanks for the info!
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