Live Trade Result – USD/CHF

Filed under: Live Trades |

Well, this was one that I did not see coming, and it just goes to show how unpredictable the forex markets can be at times. We have taken a 1% loss on the bank on this trade, and if you take a look at Figure 1, you will see why.

Figure 1.

Figure 1.

 

Figure 1 shows the daily chart for the USD/CHF pair (the pair for the United States dollar and the Swiss franc). First, let’s review my entry. Price had been moving down with a lot of bearish momentum, so when it broke through a significant support/resistance level and formed a bearish pin bar, I 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 set of two and a half time the risk. This order was filled, and another pin bar formed, which also happened to be an inside bar. Therefore, when the bottom edge of the mother candle of this inside bar (the first pin bar) was broken; I was very bearish on this.

 

Things were going very well, and we were in profit to the tune of around 1.5 times our risk. However, seemingly from nowhere over-night, some bullish momentum took hold, with some ferocity, and cleaned out our stop loss. Perhaps I should have moved my stop to break-even. However, the market seemed so bearish that I was happy to let it run.

 

Figure 2.

Figure 2.

In hindsight, and if you look at Figure 2, you will see that the market has been unable to close beyond the previous low, which is also a level of resistance. This perhaps should have been considered, and would have been a good reason to move stops to breakeven. We live and learn… More tomorrow.

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