Live Trade Result – GBP/USD

Filed under: Live Trades |

 

Well, the trade setup that I talked about yesterday on the GBP/USD forex currency pair has come off nicely to the downside – for a very nice 2.5% rise on the bank in a very short space of time (around 24 hours). That hopefully stops a run of bad results that I have had recently. However, I have just analysed my trades and found that, although I am only back at around breakeven for the year, if I had only taken setups on the daily charts – then I would be around 12.5% in profit: quite a difference and a good reason to stay away from the intraday charts for a while. Whether this is a short-term anomaly or a more broad statement on my trading is unclear. However, most people agree that trading the intraday charts is much more difficult than trading the daily charts – so perhaps this is something to think about.

Figure 1.

Figure 1.

 

Anyway – back to the trade. If you look at Figure 1, I will just summarise the trade setup once again. The pair had been moving downwards in a nice bear trend, with the 8-day EMA crossed below the 21-day EMA, and the chart visibly moving down from left to right. I wanted to be in a short trade on this pair, and I waited for a good bearish price action signal at a level of support/resistance. This came in the form of a pin bar, which I entered at a 50% retracement, with a stop loss just above the high of the pin bar, and a target set of two and a half times the risk. As you can see, this target has now been met as the pair continues to move down. Well, that’s it for now, and I’ll be a back with more very soon.

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