In the charts showing the trade examples, the vertical red line on the right shows where a position was opened. The vertical red line on the left shows where it was exited.
On June 8, the major trend on the EUR/NZD was bearish (see “Swinging low,” below). The entry criteria were met, and a short position was opened. There were minor pullbacks and a gap during the course of this trade (which could test our emotions), but sticking to our exit rules paid off. We entered the trade at 1.6280, with a stop loss at 1.6370 and a profit target at 1.610. On June 12, our profit target was hit for 180 pips of profit.
On March 13, a bullish signal was generated in the GBP/CHF (see “Swiss opportunity,” below). This cross experienced some prior consolidation, especially a few days before this particular signal. This trading method can be used to avoid a range-bound market in that the RSI would neither be above the level 60, nor be below the level 40 when there is consolidation. This trade also worked well. We entered the trade at 1.4400, with a stop loss at 1.4310 and a profit target of 1.4580. The target was hit the following trading day for the maximum profit.