Live Trade 100 – GBP/CAD

Filed under: Live Trades |

Our live trade 100 has now come to a logical conclusion with a roughly breakeven trade, and I would like to talk you through the ins and outs of this trade setup right now.

 

Figure 1.

If you take a look at Figure 1, you will see the daily chart for the GBP/CAD forex currency pair. I have highlighted the candle that is of most interest to us, this being a very nicely defined daily pin bar. This kind of candlestick tells us that price moved all the way down, rejected a certain level (which just happens to be at the 8-day exponential moving average), and then moved all the way back up all in the space of 24 hours.

 

By look at the chart, you can see that, up until our highlighted candle, the chart was very bullish. Price had been moving up and had been making mostly white bullish candles, and the 8-day exponential moving average had crossed above the 21-day exponential moving average, which confirmed this bullish momentum.

 

I put an order in at the break of the high of this pin bar, with a stop loss placed just below the low of the move, and target set of two times my risk. I also set a trailing stop of one times my risk as some added insurance in case the trade started to move against us. As you can see, the trade did indeed start to move against us, but by this time our trailing stop had already locked in a slight profit, so we got out of the trade at roughly breakeven. That concludes the month of March for another disappointing month where we lost around 2% of our bank. Hopefully, April will be one of those months where just everything comes off.

 

Trade 100 = +1.34

 

Bank = 9,448

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