Live Trades – XAU/USD (Gold)

Filed under: Live Trades |

Another trade has come off for us on the positive side yesterday, and things are currently going very well, with January carrying a profit of 7% already, with another trade currently in play and looking like it will probably yield another 2% profit (it is close, and so I have gone to breakeven on the stop loss).

 

Figure 1.

Figure 1.

The trade that has come to fruition is the one that I discussed a few days ago on the XAU/USD pair (the pair for gold). If you take a look at Figure 1, you will see the setup once again for this trade.

 

As you can see, price had been in a downtrend before pulling back to around a 50% Fibonacci retracement area. This also happened to be a very good area of support/resistance. So, when price formed a very nice pin bar at the area (after a bar with a long upper shadow), I put an order in to go short at a 50% retracement of this pin bar, with a stop loss placed just a few pips above the high of the move, and a target set of two and a half times the risk.

 

As you can see, the order was filled, and to begin with, the stop loss was very close to being hit. However, the level of support/resistance held firm, and after three days or so, price began to drop. After four days, our target was hit for a two and a half percent rise on our bank. This was a good risk-reward scenario, and thus, the trade warranted taking a risk on. Well, that’s it for this week – and what a really good week it has been to, and I’ll be back with more next week. Until, then, have a great weekend.

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