Live Trade 96 – ANALYSIS and RESULT

Filed under: Live Trades |

Our live trade number 96 came to fruition today for a well overdue 2.42% rise on our bank to repair some of the recent damage. Another couple of trades like that one and we will be back in business. Let’s go through the ins and outs of this trade right now.

 

Figure 1.

The trade in question came on the GBP/JPY forex currency pair, which is the pair for the British pound and the Japanese yen. To begin with, take a look at Figure 1, which is the daily chart for this pair. I have a thin red horizontal line drawn in to mark a significant area of support/resistance. This first acted as resistance, and then after a change of polarity, is became the new support level. Price had retraced once again down to this area, so I was on the lookout for any price action signals on the daily and intraday charts.

 

Figure 2.

Figure 2 shows the 4-hour chart for the same pair. As you can see, I have highlighted a multiple inside bar setup right at our level in question. I set an order here to go long at the break of the mother candle of the inside 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. I also set a trailing stop of one times our risk.

 

Figure 3.

Figure 3 shows that our order was filled and that price subsequently moved up very nicely indeed for a profit of 2.42%. There were one or two occasions where our trailing stop almost kicked in, but in the end we got lucky on that and reached our final target. Here is the official result.

 

Trade 96 = +242.62

 

Bank = 9,542.86 (-4.57%)

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