Live Trades 150-153 – Analysis and Results

Filed under: Live Trades |

 

Well, we’ve had a bad couple of days to give us another setback. We’ve just experienced six losing trades in a row, which is very uncommon. We’re still in profit for the month after that, but only just – and it wipes out most of our good work.

 

I’d like to talk you through one of these trades. This is trade 153 on the GBP/JPY forex currency pair, which is the exchange rate between the British pound and the Japanese yen.

 

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the GBP/JPY pair. As you can see, the pair had been in a downtrend and the 8-day EMA is crossed below the 21-day EMA, confirming this bearish momentum. However, price had just pulled back with a very bullish move, before getting stuck at a previous area of support/resistance.

Figure 2.

If we now zoom in to the 4-hour chart (Figure 2) for the same GBP/JPY pair, you will see that a pin bar formed (the first pin bar) right at this area of support/resistance. This is where we put an order in to go short at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the pin bar, and target was set of two times our risk.

 

As you can see, our order was filled, but the trade went against us as another pin bar began to form, going above our stop loss before rejecting the support/resistance level once again and moving back down. We now have to consider whether to take another trade on the second pin bar. Here are the official results…

 

 

Official results:

 

Trade 150 = -99.62

Trade 151 = -98.99

Trade 152 = -99.51

Trade 153 = -104.55

 

Bank = 9,627 GBP

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