Live Trade 80 – ANALYSIS and RESULT

Filed under: Live Trades |

Our live trade number 80 finally came to fruition yesterday, for a nice little profit. We have been in this trade for some time, having entered on the daily chart; which usually take a while to come to a conclusion as out stops and targets are wider. Let’s have a look at the setup in more detail right now.

Figure 1.

To begin with, take a look at Figure 1. This shows our setup before we entered the trade. As you can see, the chart moves up from left to right, telling us that we are in a bull trend. The 8-day exponential moving average is also crossed above the 21-day exponential moving average, which confirms the trend. Gold is a notoriously bullish market, and if we can get in on any long trades, then we have a very high probability of success.

 

A nice double inside bar setup occurred near the 21-day EMA, which I have highlighted in yellow. This shows that the market is consolidating and taking a breather. I set an order at a break of the mother candle of the inside bar, with a stop loss just a few pips below the low of the mother candle, and target of two and a half times our risk. We also set a trailing stop of one times our risk, just as insurance in case the market capitulated downwards.

 

Figure 2.

Figure 2 shows that the market did indeed continue to move up, and we locked in some good profits. However, just as it looked like we might be reaching our target, the market did indeed capitulate downwards. Fortunately, our trailing stop had locked in a tidy little profit for us; otherwise, we would be taking a loss on this one. Here is the official result.

 

Trade 80 = +71.40

 

Bank = 9,611 (-3.89%)

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