Live Trades 91-93 – ANALYSIS and RESULTS

Filed under: Live Trades |

We had one good one and two bad ones yesterday for a slight loss. The bad ones came on the CHF/JPY and the GBP/JPY pair. I was slightly cautious of taking both of these trades, as they were both reliant on the strength of the Japanese yen. In hindsight, I possibly should have only have taken one of these trades; but it is always easier to be wise in hindsight. The good trade came on the EUR/USD pair, and I will talk you through that one right now.

 

Figure 1.

If you take a look at Figure 1, you will see the daily chart for the EUR/USD pair. You will see that the 8-day EMA is crossed above the 21-day EMA, signaling a bull trend. You will also see that price had made a 61% Fibonacci retracement. Although it is not easy to see on this chart, price was also hovering around an area, which was a level where the market had gapped up recently. These gaps in the market are often good areas of support/resistance, so this seemed like a good area to be watching out for any price action setups.

 

Figure 2.

Figure 2 shows the 4-hour chart for the EUR/USD pair. As you can see, there is a nice inside bar (the second area highlighted in yellow) at our area in question, followed by a pin bar. This was our signal to go long, and we took a trade at a 50% retracement of the pin bar with a stop loss a few pips below the low of the move and a target of three times our risk; with a trailing stop of one times our risk. Our trailing stop eventually got hit for a 1.18% profit. Here are the results:

 

Trade 91 = +118.04

Trade 92 = -101.11

Trade 93 = -101.62

 

Bank = 9,401 (-5.99%)

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