Live Trade 131 – Analysis and Result

Filed under: Live Trades |

Well, after revising our trading parameters yesterday, we got off to a very good start. Our trade 131 has already come to fruition with a 2% rise on our bank, and trade 132 is also in profit. Here is the low-down on trade 131.

 

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the NZD/USD pair. For those of you that don’t know, that is the exchange rate between the New Zealand dollar and the United States dollar. As you can see, the chart is visibly moving up from left to right. In addition, the 8-day exponential moving average is crossed well above the 21-day exponential moving average. All of this tells us that the pair is in a bull trend and as a result, we are better looking out for any price action signals that confirm this bullish momentum. I have also marked in a thin red horizontal line on the daily chart to mark a significant area of support/resistance, which was a previous high before price broke through it.

 

Figure 2.

Figure 2. shows the 4-hour chart for the same NZD/USD pair. As you can see, price pulled back to this area where the previous high occurred and formed a nice pin bar (highlighted in green). This confirmed the bull trend. We put an order in here at a 50% retracement of the pin bar, with a stop loss just a few pips below the low of the move, and a target of two times our risk. As you can see, this trade was successful for a very nice 2% rise on our bank. Well, that’s all for today, and here are the official results.

 

Official results:

 

Trade 131 = +199.01 GBP

 

Bank = 9,508 GBP (-4.92%)

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