Live Trade 135 – Analysis and Result

Filed under: Learn Forex Trading |

Our live trade number 135 came to fruition today, and it was another positive result. I would like to take you through the ins and outs of this trade setup right now.

 

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the GBP/JPY forex currency pair. As you can see, there is no obvious trend on this chart. This is what we call a range-bound market, as price is stuck in a range. I have marked in the top and bottom of this range with green horizontal bands.

 

Figure 2.

Figure 2 shows the 4-hour chart for the same GBP/JPY forex currency pair. What you will see here is that a very well defined pin bar formed right at the bottom end of this aforementioned trading range. We placed an order at the close of this pin bar to go long at a 50% retracement of the candle, with a stop loss placed just a few pips below the low of the pin bar, and with a target of two times our risk.

 

As you can see, our order was filled and our target was met for a very nice 2% rise on our bank. If we can continue like this, then we will soon be back into profits.

 

I do feel like the live trade alerts are now settling down. I did try one or two things, such as using trailing stops, to maximise our profits. However, this did not really work out and it rather stunted our progress. I have decided to go with a risk-reward scenario of 1:2 for every trade that we take now; and instead of trying to hand pick the best of my trade setups, I am now sending you every trade that I take myself on my live account. That’s a 5% rise on our bank so far this month – so here’s hoping that we continue in this way for the remainder of the month. Here are the official results…

 

Official Result:

 

Trade 135 = +210.58 GBP

 

Bank = 9,819 GBP (-1.81%)

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