DislikedHi Tw0Eleven,
Thanks for sharing your strategy.
Is this a valid entry on this USDCHF chart? I entered just below the crossover of the 5 and 20mas.
Thanks.
PS.: Added the image as an attachment. Hope it works.Ignored
To be honest, I've never traded this method on the USDCHF pair. So I'm not sure how well it works on that pair. But as far as your analysis...it looks pretty good. You had a nice bearish engulfing candles where price touched/bounced off the 200ma. And the 5/20ma crossed down AND you spotted Divergence on the macd histogram. So nice work on that. However, there are a couple things that stick out to me: 1) that bearish engulfing candle is nearly 100pips big...so right away you are risking a lot on that trade...I hope you traded a little lighter than normal. 2) price is technically still trending up because it's making HigherHighs and HigherLows...so you'll want to watch this carefully. Perhaps draw a trendline in there.
All in all...not a bad trade. I just see a couple things that could cause price to go up as well as down. So just keep monitorin it...if price closes back above the ma's and/or the ma's cross back up and/or macd starts going higher again...perhaps get out of the trade? Goodluck and thanks for posting your chart!