Live Trade – EUR/USD (update)

Filed under: Live Trades |

I would like to provide a few updates regarding the trade on the EUR/USD currency pair that I discussed yesterday, and a commentary on how I plan to manage this trade now that it is in play.

 

Figure 1.

Figure 1.

If you take a look at Figure 1, you will see the setup in question. Just to briefly recap on what I said yesterday, I had put an order in to go short at a 50% retracement of the bearish pin bar, and this order was filled very nicely. Since then, we have seen a lot of bearish action, and this is shown with the long bearish candle from yesterday. This, at one point, put us in profits of over three times the risk. However, I do want to stay in this trade if possible and see where it takes us, so at the close of this bearish candle, I merely moved my stop to breakeven so that we are in a risk-free trade.

 

Since then, the bulls have unfortunately started to wrestle control. Whether this is temporary control remains to be seen. Hopefully this bullish action reverses during today, which would form another bearish pin bar. Whatever happens, I think I will move my stop to a few pips above the high of today’s candle and lock in some profits (hopefully!). There is also the possibility of a gap in the market on the open of the market on Sunday night, and this could either go for or against us – so a stop loss above the high of today’s candle will at least offer some protection against this; providing that my broker honours this stop loss. However, the most important point here is that, until today’s daily candle is complete, we cannot really asses the psychology of the market, and although this currently looks bullish, it could soon turn around.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>