Saturday, March 17, 2012

17th March 2012 - win on USDCHF

Chalked up a win on the USDCHF.


I traded my first two-bar reversal pattern yesterday morning on the USDCHF. At the moment it seems to be in the middle of a bear run, but the market close for the weekend is only an hour away so I've decided to close the trade.

I'm not 100% happy about closing here. Bearish momentum is very strong and price is hovering around the daily low as I type.

However, keeping the trade open over the weekend would've offered me a reward-to-risk of around 0.33 to 1. That's very unattractive, especially considering the extra risk of holding a trade over the weekend. Anything can happen over the next 48 hours. A candle on Friday is not so applicable on Monday. If this were any other day, I would keep the trade open.

One thing I noticed is the massive spread towards market close. The USDCHF usually has a spread between bid and ask of around 3 pips. As I closed my traded, this had widened to 9 pips. The professionals don't seem to like holding trades over the weekend.

All up, this trade netted 40 pips.

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