Live Trade Result – Trade 149

Filed under: Live Trades |


Trade number 149 was unfortunately a losing trade, but I would still like to run you through that trade to show you why it was selected.


Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the AUD/JPY forex currency pair, which is the pair for the Australian dollar and the Japanese yen. As you can see, there is no obvious current trend with this pair. By looking at the exponential moving averages, we can see that the pair was in an uptrend, but now the 8-day EMA has crossed below the 21-day EMA, which signals to us that the market is now slightly bearish in the shorter term. In this kind of scenario, it is better to be on the lookout for price action signals that confirm this bearish momentum.


Figure 2.

Figure 2 shows the 4-hour chart for the same AUD/JPY pair. What you can see here is that the market was making a very strong move down, and then there was a nice pin bar confirming this bearish momentum at a very good area of support/resistance (you cannot see why on this chart as it is zoomed in, but take my word for it, there was a swing low on the daily chart that provided us with a very strong area).


We put an order in to go short at a 50% retracement of the pin bar, with a stop loss just a few pips above the high of the pin bar, and a target of two times our risk. Unfortunately, this trade was not successful for a 1% loss on our original bank. Although price did hit our stop loss, it then continued to move down; so we were right in our idea, but on this occasion, it just did not work out.


Official Results:

Trade 149 = -90.43

Bank = 10,029 (+0.29%)

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