As you can see from the chart to the right, the Euro/Swiss pair has been moving along its 800 sma for several days now. It will likely break away from the 800 either up or down at some point in the near future. Remember that this trade works a bit differently. I will buy or sell on a close above the upper or lower channel lines on the hour bar. I will close the trade if it closes back inside the channel and look for another entry signal. So the stop loss is hard to pin down. I'll probably use the 800 as my stop loss, but I will close the trade if it closes back inside the box. The stop is just kind of a safety. I'll also move to break even at +30 pips and put a trailing stop on after that. We'll see what happens.Happy Trading!
