Live Trades (157,158,161) – Analysis and Results

Filed under: Live Trades |

I have three live trade results to tell you about today, which includes two bad ones and one good one for a very marginal profit. I would like to run you through the good one right now and take your through the reasons for taking the trade.

 

Figure 1.

The trade in question comes on the GBP/JPY forex currency pair, which is the pair for the British pound and the Japanese yen. To begin with, let’s take a look at Figure 1. This is the daily chart for the GBP/JPY currency pair.

 

What you can see here is that the pair is clearly trending to the down side. The 8-day exponential moving average is crossed well below the 21-day exponential moving average, and the chart is clearly moving down from left to right. In this kind of scenario, we are best served looking out for any price action signals that confirm this bearish momentum.

 

Figure 2.

Figure 2 shows the 4-hour chart for the same GBP/JPY pair. I have marked in a horizontal line on this chart to mark a significant area of support/resistance. As you can see, this was a significant swing low point, and this has now become a new support zone. So when price formed a bearish pin bar that penetrated this level, I 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 a target set of two times our risk. As you can see in Figure 3, this trade came off very nicely (and relatively quickly) for a 2% rise on our trading capital. That’s it for today – more tomorrow.

 

Figure 3.

Official Results:

 

Trade 157 = -100.57

Trade 158 = -100.72

Trade 161 = +211.82

 

Bank = 9,737 GBP

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