This is a follow up post on the USDCHF 1-2-3 chart pattern breakout with ADX determining trend strength. The first two posts can be found below:
USDCHF Trend Strength (ADX) and 1-2-3 Pattern Follow Up
When the USDCHF broke through point #2, it simply blew past the FE 100.0 target. However, the price fall stalled out at a previous support level indicated by the lower thin blue line.
At this point, a trader could already have taken partial profits at the FE 100.0 price target, or at the support level. Stops could also have been moved to breakeven or better, making this current trade a winning trade even if the position was stopped out now.
Trading Summary
When you have a decent forex trading system for entries, it’s also crucial that you clarify your exit strategies. A forex trading system without any exit strategy will basically be useless to you unless you’re already more experienced as a trader.
So while you develop your trading entries, remember that you only make the money when you exit your positions.