Live Trades 140-141: Analysis and Results

Filed under: Live Trades |

 

I would like to go through some more live trade results today. Trade 140 was cancelled as it was time barred and trade 141 came through very nicely for us for a 2% rise on our bank. I would like to take you through the ins and outs of that trade setup right now.

 

Figure 1.

If you look at Figure 1, you will see the daily chart for the EUR/JPY forex currency pair, which is the pair for the euro and the Japanese yen. As you can see, there is currently a lot of bearish momentum with this pair so it was a good idea to try to hop onto that momentum via a bearish price action signal. Look at the way the 8-day EMA is crossed below the 21-day EMA and the two moving averages are moving ever wider apart. This is a strong indication of a powerful move.

 

Figure 2.

If you now look at Figure 2, you will see the 4-hour chart for the same EUR/JPY pair. Notice the stepping down action of price and the support/resistance levels. Everything looks very neat and fairly predictable. So when a pin bar formed at a previous area of support/resistance, we hopped on to the trend.

 

Figure 3.

Figure 3 is a closer look at the 4-hour chart for the EUR/JPY pair. Here, you can clearly see the pin bar rejecting the area of support/resistance. We put an order in here to go short at the break of the low of the pin bar, with a stop loss placed just a few pips above the high of the move, and a target of two times our risk. As you can see, this trade came off for a 2% rise on our bank.

 

Official Results:

 

Trade 140 = cancelled

Trade 141 = +200.35

 

Bank = 9,820 GBP (-1.8%)

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