Live Trade Number 8 – ANALYSIS and RESULT

Filed under: Live Trades |

Well, our live trade number eight came off once again very nicely for a 2% rise on the bank. That now represents a very good start for the live testing phase of this service. I would now like to take you through this trade in a little more detail.

 

Figure 1.

If you take a look at Figure 1, you will see the 4-hour chart for the GBP/CAD forex currency pair. Our entry was at the long pin bar at the top of the chart. Price had entered a significant area of support/resistance, and then had quickly pulled back, rejecting the level – which formed this pin bar. We put an order in to go short at a 50% retracement of this pin bar, with a stop loss just a few pips above the high of the move and a target of two times our risk, which is a risk-reward scenario of 1:2.

 

Our order was filled for a sell trade, and price did initially move in our favor before pulling back and almost hitting our stop loss. However, the pin bar held very well as an area of resistance, and price moved back down and finally reached our target after about one and half days of being in the trade for a nice 2% rise on our bank (approximately). This serves as yet another great example of using price action at significant areas of support/resistance. Here are the official results:

 

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

 

Total Profit/Loss = +605.53 GBP

  

So that is just over a 6% rise on our bank of 10,000 GBP since we began the live test on December 6th. Not a bad start! More next week…

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