Live Trade Number 1 – GBP/CHF 1-Hour Chart: ANALYSIS and RESULT

Filed under: Live Trades |

Well, our first live trade turned out to be a bit of an anti-climax, as our order was not even filled. However, I would still like to run through the reasons for putting in the order, just so you know the ideas behind the trades.

Figure 1.

 

If you first take a look at Figure 1, you will see the daily chart for the GBP/CHF pair. You will see that price had just moved through one of my green “zones”, which I have marked in as a significant level of support/resistance. This level actually stretches way back on the chart, and was an extremely significant level with numerous changes of polarity. Price then pulled back to this green zone, and as we are in a dominant up trend, this is a good position to be looking for any price action signals.

Figure 2.

Figure 2 shows our order for entry. There were two very nice pin bars on the 1-hour chart. I was tempted to get in on the first pin bar, but thought it was prudent to get some confirmation first. This confirmation came in the form of another pin bar, and I set an order to go long at a 50% retracement of this pin bar, with a stop loss placed just below the low of the move. I set my target at three times my risk, so that is a risk-reward ratio of 1:3.

 

Figure 3.

Unfortunately, Figure 3 shows that the order was still not filled a couple of hours later, so I cancelled the trade. Price did briefly pull back, but not quite far enough to fill our order unfortunately before moving up as we expected.

December Profit/Loss = 0%

2 Responses to Live Trade Number 1 – GBP/CHF 1-Hour Chart: ANALYSIS and RESULT

  1. Hi Matt,

    Nice one and wish you all the best. Just to let you know, cant wait daily to read your blog. Always refreshing.

    Jason
    December 7, 2011 at 12:02 pm
    Reply

  2. Hmmm… Matt is indeed running the site but the author of the “Daily Trade” blog is me. My name is Jay . Thanks for the comments though.

    JayG
    December 7, 2011 at 2:40 pm
    Reply

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