Live Trade – XAG/USD (Silver)

Filed under: Live Trades |

I currently have an order in on the XAG/USD pair (the pair for silver) on my live account, and I would like to talk you through this setup right now.

 

Figure 1,

Figure 1,

To begin with, take a look at Figure 1. This is the weekly chart for the XAG/USD pair, and I am using it to assess the trend and look out for any important areas of support/resistance. As you can see, there is a very obvious long-term support level at the bottom of this chart, which I have marked in with a horizontal green band. Price is once again approaching this important level, and as such, I was looking out for any bullish price action signals that would confirm that this level is holding.

 

Figure 2.

Figure 2.

If you now look at Figure 2, you will see the daily chart for the same XAG/USD pair. What you can see here is that price went into this aforementioned support zone, before forming a bullish pin bar, followed by a bullish engulfing pattern. This provides a nice bullish signal right at out area of support/resistance. However, there is also a support/resistance zone just above this area from the previous consolidation range, so this limits the risk-reward scenario a little if we go long at the break of the high of the bullish candle. Therefore, I have chosen to enter at a 50% retracement of the bullish candle, with a stop loss placed just a few pips below the low of the pin bar, and target set of three times the risk. This order has not yet been filled, so we will see how this one progresses over the next couple of days. In fact, if it is not filled today – then I will likely cancel the order and reassess the situation.

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