Live Trades 71, 78 & 83 – ANALYSIS and RESULTS

Filed under: Live Trades |

One good one and two bad ones to tell you about today for a slight profit – and first the bad ones… Trade number 71 and 83 both failed for a combined 2% loss on our bank. However, trade number 78 came through for us for a 2.5% profit, and I would like to run you through that trade right now.

 

Figure 1.

The trade in question came on the AUD/CAD forex currency pair, which is the pair for the Australian dollar and the Canadian dollar. If you first look at Figure 1, which is the daily chart for the AUD/CAD pair, you will see that the pair has been in a nice bull trend, with the 8-day EMA crossed above the 21-day EMA and the chart moving up from left to right. You will also see that there is a good level of support/resistance marked in with a thin red horizontal line, and this is a good place to look out for any price action signals on the daily, 4-hour, and 1-hour charts.

 

Figure 2.

If you now look at Figure 2, you will see the 1-hour chart for the AUD/CAD pair. What you will see is a very nice bullish engulfing pattern right at the area of support/resistance that we just talked about. This was a good place to take a long trade so I set an order at a 50% retracement of the bullish candle, with a stop loss just a few pips below the low of the move, and a target of two and a half times my risk. Figure three shows that the trade was successful. Here are the official results as we continue to slowly dig ourselves out of the hole that January put us in.

Figure 3.

 

Trade 71 = -100

Trade 78 = +250

Trade 83 = = -103

 

Bank = 9,697 (-3.03%)

 

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