This was another squeeze box trade. It took a little while for this trade to come to fruition but it was worth the wait.
Short 1 (200) @8300
Stop @ 8427 (-127)
Target @ 8150 (+150)
Click above for larger image
What gave me confidence to stay in this trade was the fact that price was hugging the bottom of the box. When it does that and the highs are sloping down, there is a high probability that stored orders are being cleared at that level and once they are cleared, the market is free to break the dealing range.
I exited this trade on Friday because I was going to sleep and it was the end of the week so I didn’t want to hold it over the weekend. It was closed at 8194 for a nice +106 pip profit. Price proceeded to drop another 100 pips and would have hit the target. I’m OK with this though because I think it is better to bag pippage than to go to sleep and have the market turn or have the market open higher on Sunday and wipe out that profit.
If you enjoyed this article, you might also like:
Category: 
Tags: 
[...] Trading Heroes » 1/8/09 CHFJPY Trade [...]