Paper trade: USD/CHF 50% long @ 1.02747, trailing stop 1.0236

I've switched back to using the daily chart as noted earlier today to save myself some hassle. This is the first entry using the daily chart since the switch. But I actually placed this order before going to bed and then it was executed last night while I was sleeping. USD is taking a beating these days and USD/CHF is testing a double bottom. I entered this trade based on Figure 1 for the following 4 reasons:

  1. RSI is shaping up a positive divergence if we can hold this support.
  2. RSI is as oversold as December 2008.
  3. Entry price of 1.027 is at a previous congestion zone based on Figure 2.
  4. USD/CHF took a very fast dive in the past 3 days, which usually prelude a retracement up.

However, the trend remains obviously downward. That's why I'm entering with only a 50% as there's no confirmation just yet. Once there's confirmation, such as the RSI making a U bottom, I plan to add the other 50% position. Entry: 1.02747, previous congestion zone, see Fig. 2 Stop: 1.0236 Target: 1.045 Reward / Risk = 175.3 / 38.7 = 4.5 > 3

[caption id="" align="aligncenter" width="580" caption="USD/CHF daily"][USD/CHF daily]USD/CHF daily[/caption] [caption id="" align="aligncenter" width="580" caption="USD/CHF 3-hour"][USD/CHF
3-hour]USD/CHF 3-hour[/caption]