Live Trade – EUR/USD

Filed under: Live Trades |

I put an order in for a live trade late last night on the EUR/USD forex currency pair (the pair for the euro and the United States dollar). Every night at 10 pm UK time (although this is 11 pm in British summertime), I check all of my charts on the daily timeframes at the close of the daily candles for any possible setups. On this occasion, something interesting lined up on the EUR/USD pair…

 

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the EUR/USD pair, and it is the only chart that we will need to look at for this particular setup. As you can see, this pair had been in a downtrend, but that seems to be changing. The 8-day exponential moving average is moving ever closer to the 21-day exponential moving average, and the two moving averages now seem poised to cross over and become bullish. Price has also just closed through a significant area of support/resistance (marked with a horizontal green band). It was at the close of this break that I put an order in to go long at a 50% retracement of the bullish candle, with a stop loss placed just a few pips below this bullish candle, and a split target of one and two times my risk (with 0.7% of my bank being risked for a target equal to this risk, and 0.3% of my bank being risked for a 0.6% profit). If the second target were reached, I would get a 1.3% rise on my bank, and if the first target were reached before the stop loss is hit, I would still get a 0.4% rise on the bank. If the stop loss were hit first, then it would be a cumulative 1% loss on the bank. This is a much more conservative approach that I have been taking recently, and it assures that my strike rate is much higher.

 

As you can see, the order has not yet been filled, and in fact it looks unlikely that the order will be filled now as price has since moved up after a slight retracement. If the order is not filled before the close of today’s session going into the weekend, then it will be cancelled.

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