Live Trade 94 – ANALYSIS and RESULT

Filed under: Live Trades |

 

Our live trade number 94 came to a logical conclusion yesterday, adding to our recent drawdown with another loss. It is really unbelievable how the winners and losers often all come together. Hopefully, that winning run will come soon and the confidence will come flooding back. Until then, we just have to stick with it.

 

Figure 1.

The trade in question came on the NZD/USD pair. If you take a look at Figure 1, which is the 4-hour chart for the NZD/USD forex currency pair, you will see everything that you need to. The pair had obviously been in a powerful downtrend, making fifteen or sixteen black bear candles in a row and moving down almost in a straight line (or as near to a straight line as you can get in forex). So when a nice inside bar formed in this downtrend, I was all over it and set an order at a break of the mother-candle, with a stop loss placed just a few pips above the high of the mother-candle, and a target of two and a half times our risk. I also set a trailing stop of one times our risk as a bit of insurance.

 

As you can see, the order was filled and we moved into some nice profits. However, a bullish candle formed and this was a warning against what was to come. If this weren’t a ‘set and forget’ strategy that we are using, I would have exited the trade at this point for a breakeven result. It was the first bullish candle for around seventeen bars, and a clue that the market sentiment was changing. As it was, we ended up taking loss. Here is the official result.

 

Trade 94 = -101.40

 

Bank = 9,300 (-7%)

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