Live Trades 125-127: ANALYSIS and RESULTS

Filed under: Live Trades |

I have some live trade results to tell you about today. One of them was successful and two of them were not for around a breakeven cumulative result – meaning we are still treading water at the moment.

 

I would like to talk you through the one that was successful, and this was a trade made on the EUR/AUD forex currency pair, which for those of you that don’t know, is the pair for the euro and the Australian dollar.

 

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the EUR/AUR pair. What you can see here is that price had been moving down very nicely and the 8-day EMA (exponential moving average) is crossed firmly below the 21-day EMA, which tells us that there is a lot of bearish momentum. In this kind of market, we should only really be lookout out for price action signals that confirm this bearish momentum.

 

At the end of June, a nice pin bar formed which bounced off of the 8-day EMA (highlighted in yellow). This would have been a nice time to put an order in to go short at a 50% retracement of the pin bar, with a stop loss just a few pips above the high of the move, and a target of two times our risk. As you can see, this trade would have been successful for a 2% rise on our bank. If we can be successful in our trades just half of the time with a risk reward of 1:2, then we will be very profitable indeed.

 

Well, that is all that I have for you today, and here are the official results.

 

Official results:

 

Trade 125 = -99.35

Trade 126 = -97.39

Trade 127 = 201.45

 

Bank = £9,409.60

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