My favourite trade this year
This has been, without doubt, the favourite trade that I have taken this year. The large part of my analysis was done on the daily chart, where I've drawn my head and shoulders (bear) price pattern on and I noticed bearish sentiment entering the market at the 1.99-2.00 level. This was confirmed by using the MACD and RSI indicator tools - on the MACD the faster MA was just crossing down through the slower MA just as my right shoulder was forming, adding to the bearish sentiment, and at the same time the RSI was falling from an overbought level as well as crossing down through the 50.00 level which confirmed my bearish bias. I scaled up to the monthly chart where I could plot a trendline and use this as a third-touch target for my take profits - 640 pips away. In just under a week, this trade played out pretty much perfectly and exploded down towards my take profit with next-to-no drawdown!
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