Live Trade – GBP/USD

Filed under: Live Trades |

I had yet another failed trade off of a 4-hour chart today, this time on the GBP/USD pair, and I would like to talk you through this trade setup right now.

 

Figure 1.

Figure 1.

To begin with, take a look at Figure 1. This is the 4-hour chart for the GBP/USD pair. What you can see here is that the chart is visibly moving down from left to right in a bear trend. I have also marked in a significant area of support/resistance on this chart (marked with a horizontal green band). This area first acted as resistance, and then as support. So, when price moved up to this area once more and formed a bearish pin bar, I couldn’t resist the opportunity to put an order in to go short at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the move, and a massive risk-reward target of 1:4, or a target of four times the risk.

 

Figure 2.

Figure 2.

However, Figure 2 shows that once again, this trade was not successful, and the bank took a 1% loss. That puts me at a 6% profit for January, which although is satisfying, is a little disappointing after being up by 9% at one stage. That is 12 trades taken for January, with all five trades taken on the 4-hour charts being losers. As for the trades taken on the daily charts, that is five winners with risk-reward scenarios between 1:2 and 1:3, one loser, and one at breakeven which would have been a 2.5% rise on the bank if I had not meddled with it. A month that could have been so much better – but in the end, adequate is better than nothing. Well, that’s it for today, and for this month in fact, I’ll be back with more tomorrow.

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