Live Trade – XAG/USD

Filed under: Live Trades |

I have a live trade currently on the XAG/USD forex currency pair, which for those of you that do not know is the exchange rate between silver and the United States dollar.

 

Figure 1.

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the XAG/USD pair. What you can see here is that the pair is in a nice downtrend. The 8-day exponential moving average is crossed well below the 21-day exponential moving average, and there have been a number of strong, black bear candles recently. I have also drawn in a significant area of support/resistance on this chart (marked with a horizontal green band). This was a previous low – and price has now broken through this area, and retraced back up to it. It is here that I was on the lookout for any bearish price action signals to confirm that this level will hold and that price might be set to continue its move downwards.

 

Figure 2.

Figure 2.

If you now look at Figure 2, you will see the 4-hour chart for the same XAG/USD pair. What you can see is that a nice bearish pin bar formed right at our area of support/resistance. It was here that I put an order in 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 pin bar, and a target set of three times the risk. My order has since been filled, and price moved close to two times my risk. It has since pulled back a little bit and formed a bullish pin bar, so I have moved my stop to breakeven now to protect my trading bank and be in on a risk-free trade. We will see how this one progresses today and hopefully it will be a positive result so that we can mitigate some of the February losses.

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