Live Trade Number 12 – ANALYSIS and RESULT

Filed under: Live Trades |

I would like to take you through our twelfth live trade right now, which reached a conclusion yesterday.

Figure 1.

 

The trade in question was a buy trade on the EUR/CAD (euro and Canadian dollar) forex currency pair. If you look at Figure 1, you will see the daily chart for this pair. What this chart shows is a very significant area of support at the bottom of the chart, marked with a green band. Now, although we had been in a short-term down trend, and one with some momentum, I felt that the area of support was strong enough to warrant a counter-trend trade if any price action signals came at this area.

 

Figure 2.

Figure 2 shows what happened once price reached this area of support. A bullish engulfing pattern formed and I put a buy order in 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 my risk. I also felt that the two candles with long tails just a couple of candlesticks before the bullish candle were confirming this possible reversal.

 

Figure 3.

However, Figure 3 shows that this trade was not successful. Our stop loss was hit fairly quickly for a loss of -99.30 GBP. In hindsight, perhaps the upper shadow of the bullish candle was a warning that the dominant trend might be too strong to resist. Anyway, here are the full results so far:

 

Trade 1: Cancelled

Trade 2: -100.48

Trade 3: Cancelled

Trade 4: 199.59

Trade 5: 200.01

Trade 6: -99.46

Trade 7: 204.56

Trade 8: 201.31

Trade 9: 197.88

Trade 10: -99.70

Trade 11: -100.07

Trade 12: -99.30

 

Total Profit/Loss = +504.34 GBP

 

 

Well, that’s it for today, and I’ll be back with any live trade alerts throughout the day as and when they happen.

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