TRADE #4 OF STAGE 4 COMPLETELY PROFITABLE: LONG USDCHF

My trading plan shows this pair to be in a position to go long. Click on the chart to the right to enlarge it and read the text. Reasons for entering the trade: 1. Pair is above the 55 DEMA and 200 DEMA on the daily chart 2. Pair is near the stochastic oversold area on the 4 hour chart. UPDATE: 3.4.2010 This trade was entered at the expected point as seen by this chart. (click on the chart to enlarge). As of this morning, the T1 was hit for a 38 pip profit. I am going to tighten my stop loss as I suspect the pair is consolidating. I will also follow the stochastics very closely. If and when the stochastic becomes overbought (>80) I will take profits and/or really tighten the stop losses. UPDATE: 3.5.2010 This trade also went completely my way. I used my revamped trading system to look for optimum set-ups based upon my parameters and what I learned from my losing trades in the first few stages. Since this trade is #4 in stage 4 I didn't necessarily need to take it since my first 3 trades of stage 4 were completely profitable. Wow, that makes my record for stage 4 at 4 wins and no losses. So here is how the trade worked out. I entered the trade in an area I felt would be honored based upon the overall consolidation for the past few days based upon the 4 hour chart and the fact that the stochastics was in the oversold area. I placed my Fibonacci retracements on the chart and picked out specific levels that I expected to be honored. My exit was going to be 70 pips below my entry and once profitable, I was going to take profits either at Fib levels or when the stochastics got into the overbought areas. Well, T1 and T2 areas were hit for a profit and I took my remaining two contracts when the stochastics was in oversold area. Here are the results: ENTRY: 1.0702 T1 HIT AT 1.0770 (68 PIP PROFIT, $680) T2 HIT AT 1.0810 (92 PIP PROFIT, $980) EXITED LAST TWO CONTRACTS DUE TO STOCHASTICS BEING OVERBOUGHT AT 1.0745 (43 PIP PROFIT EACH, SO 86 PIP PROFIT FOR $860) TOTAL PIPS PROFIT WAS 246 FOR A $2,460 PROFIT ON THIS TRADE.