Live Trade – XAG/USD (Silver)

Filed under: Live Trades |

 

I have a live trade order currently in on the XAG/USD pairing (the pair for silver), and I would like to talk you through this setup right now. If you take a look at Figure 1, you will see all the data and all of the information that we need for this particular setup.

 

Figure 1.

Figure 1.

Figure 1 shows the daily chart for the XAG/USD pair. What you can clearly see is that the market is in a bear trend. The 8-day exponential moving average is crossed well below the 21-day exponential moving average and the chart is visibly moving down from left to right. In addition, a very important support/resistance level was broken just a few weeks a go, and despite consolidating since then, has been unable to move up, and continues to fall.

 

The setup I am trying to enter on to the short side is a double inside bar setup that has just formed. I have put an order in to go short at the break of the low of the mother candle of this setup, with a stop loss just a few pips above the high of the mother candle. I have set a preliminary stop loss of two times the risk, but as there is a significant support/resistance level to contend with before that, I will be managing the trade (if it is entered!) day by day.

 

You might also see that there was another inside bar setup just a few days ago (which I almost took on), and anyone who took this setup would be seeing some nice profits now (of around that equal to the risk). However, it does look like the bearish momentum has not finished for this pair at present, and anyone in on the short side on this pair at the moment will be very happy indeed.

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