Live Trades 18 & 19 – ANALYSIS and RESULTS

Filed under: Learn Forex Trading,Live Trades |

 

Well, to begin with, our order for live trade number 19 was not filled during the specified time, so that was cancelled. It is worth nothing that price moved down and past our target level though, so we were right in our thinking. Live trade number 18 was another loser I’m afraid. We’re on a bit of a bad run at the moment, but I’m sure we’ll have a good one soon. Here is the rundown on that trade.

 

Figure 1.

If you look at Figure 1, you will see the daily chart for the GBP/CHF forex pair. You will see that a nice area of resistance had formed at the top of the chart, and that price had been approaching this area once again. There is also an RSI negative divergence on this daily chart (but I this is not shown here).

 

Figure 2.

If you now look at the 1-hour chart (see Figure 2), you will see that there is a nice bearish engulfing pattern at this level. There is also an RSI divergence on this 1-hour chart as well, in addition to price being at an extreme level with regards to the Bollinger bands. This seemed like a good place to take a short trade, so I set an order at a 50% retracement of the bearish candle with a target of two times my risk. A stop loss was placed just a few pips above the high of the move.

 

Figure 3.

However, if you look at Figure 3, you will see that we got stopped out once again, for a 1% loss on our bank. These losing runs are inevitable, and we just have to keep looking at our long-term equity chart to see that when we are experiencing a drawdown. Here are the results.

 

Trade 18 = -98.24

Trade 19 = cancelled

 

Total Profit/Loss for test = +295.38 GBP

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