Live Trade – XAG/USD (silver)

Filed under: Live Trades |

I currently have a live trade order on the XAG/USD forex currency pair, which is actually the exchange rate between silver and the United States dollar. If you take a look at Figure 1, you will see the setup that I am looking at.

 

Figure 1.

Figure 1.

This is the daily chart for the XAG/USD pair, and the only chart that we will need to look at for this particular setup, as all of the data that we need is located in this chart. You will immediately notice that this pair is very much moving sideways. This is what is known as a ‘trading range’, and the market is consolidating in a very narrow range, unable to break out one way or the other.

 

Price has just formed a pin bar at the bottom end of the trading range. This is showing a clear rejection of this level once again. As such, I have put an order in to go long at a 50% retracement of this pin bar, with a stop loss placed just a few pips below the low of the pin bar, and a target set of two times the risk. I have had to place this order at a 50% retracement of the pin bar, as an entry any higher (such as at the break of the high of the pin bar, or at the current market value) would not make any sense with regards to the risk-reward scenario. The target has to be before the upper boundary of this trading range (marked with a horizontal green band), and as such, the entry has to be a little tighter like this. Currently, the order has not been filled, but I will leave this order in for a day or two and see how things play out.

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