Live Trade 119 – Analysis and Result

Filed under: Live Trades |

We still have one live trade in play, but live trade number 119 is now a result. I called this as a manual close, and I will now explain why I did this.

 

Figure 1.

To begin with take a look at Figure 1. This is the daily chart for the GBP/CAD forex currency pair. As you can see, the chart is visibly moving up from left to right, and the 8-day exponential moving average is crossed above the 21-day exponential moving average. This all tells us that the market is bullish. Therefore, we should only really be looking to take trades that ride this bullish momentum.

 

The candle that we are most interested in on this chart is the pin bar that I have highlighted in yellow. This occurred at a very nice area of support/resistance, and it was also in the direction of that bullish momentum. There had also recently been several long lower shadows rejecting this level, so it seemed that price was more likely to move up than down.

 

We put an order in to go long at a 50% retracement of this pin bar, with a stop loss just a few pips below the low of the move, and a target of two and a half times our risk. Price did move to over two times our risk in profit, before moving back down and forming two candles with long upper shadows. The 8-day exponential moving average and the 21-day exponential moving average also started to move closer together, so I took this as my cue to exit the trade for a marginal profit. Whether this was the right move remains to be seen. Well, that’s it for today. Here are the official results.

 

RESULT

 

Trade 119 = +8.29

 

Bank = 9,505 (-4.95%)

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