Live Trade Result – USD/JPY

Filed under: Live Trades |


I have an example of a live trade that did not go as planned today. We can’t expect every trade to come off, and all we can do is to make sure that our setups are solid and have a good probability of success. Losing is the cost of doing business, and on this occasion, we have some costs.


Figure 1.

If you take a look at Figure 1, you will see the daily chart for the USD/JPY pair, which is the pair for the United States dollar and the Japanese yen. I have drawn in a green horizontal line on the chart to mark in a very strong area of support/resistance. Price had recently broken through this level and the market is bearish, with the 8-day exponential moving average crossed below the 21-day exponential moving average. Therefore, I was looking out for any price action signals that confirmed this bearish momentum near to the significant area of support/resistance.


Figure 2.

Figure 2 shows the 4-hour chart for the same USD/JPY pair. What you can see in the middle of the chart is that a very well-defined pin bar was formed at our green band. It was here that I set an order to go short at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the move, and a target of two times my risk. As you can see, although this setup was a solid one, it just simply did not come off and our stop loss was hit for a 1% loss on our bank. Sometimes, the markets, for one reason or another, simply do not move the way that you expect – and this unfortunately is one of those cases. That’s it for today – and I’ll be back with more tomorrow.

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