Live Trade – GBP/JPY

Filed under: Live Trades |

The trade that I currently have on the GBP/JPY pair (the pair for the British pound and the Japanese yen) is currently going very well, and has been just a few pips away from reaching our target.

 

Figure 1.

If you look at Figure 1, you will see the setup that I took for this trade. As you can see, price had been quite bullish up until recently, with the 8-day EMA crossed well above the 21-day EMA. However, price then pulled back, having probably gone too far and too quickly, and took a breather. It retraced until a very strong level of support/resistance, before forming a nice pin bar, followed by a bullish engulfing pattern. It was at this bullish engulfing pattern 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 the low of the move, and a target of two times the risk.

 

As you can see, this order was filled, and price has indeed moved up. When price moved in profit to that equal to the risk, I took 70% of the lots off the table as profit, letting the other 30% run to either the stop loss or the target. By doing this, we now have an assured profit of 0.4% if the stop loss gets hit, and a potential profit of 1.3%. This is now a nice safe trade to be in, and we have not sacrificed too much to get there. Had we not taken any profits, we would still have a risk exposure of -1%. There is nothing worse than letting a winning trade turn into losing one, and this is the reason why I chose to implement this strategy on this particular trade.

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