Live Trade Update – XAG/USD

Filed under: Live Trades |

The live trade order that I discussed yesterday on the XAG/USD pair (the pair for silver) has now developed somewhat, and I would like to update you on this right now.

 

Figure 1.

Figure 1.

If you take a look at Figure 1, you will see the daily chart for the XAG/USD pair, and you will be reminded of the setup in question. This was a massive bullish pin bar at a good area of support/resistance, and we put an order in to go long at a 50% retracement of the pin bar. Unfortunately, after one day, this order just missed out on being filled by literally a couple of pips, and since the candle following the pin bar had a bit of an upper shadow, I closed the order. However, those who stayed in the order will now be breathing easier, as this order would now be filled, and the trade would now be in profits of that almost equal to the original risk (the stop loss was just a few pips below the low of the pin bar).

 

So, the question that I am asking myself right now is – did I close the order too soon? Upon reflection, I would say that this was the right decision. The candle after the pin bar suggested (with its upper shadow) that the pair might have some bearish momentum left yet. However, the support/resistance level has obviously held well, and price has started to move back up. But this could look a lot different at the end of the day if this candle turns around, so we will have to wait and see. Ultimately, it is important to listen to the market candle by candle, as each session is a narrative of market events and sentiment, and by listening to this narrative, we can make more informed trading decisions.

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