The Daily Trade – Day 9 (the result)

Filed under: Learn Forex Trading |

Well… this trade finally came off to the downside and we reached our target of two times our risk. As this trade was on the four hour chart and our stop was relatively wide, it did take quite a bit longer than usual to come off for us. However, if was mostly comfortably in profit for us right from the word go, and it almost hit our target on a number of occasions before finally breaking through.

 

Figure 1.

You can see from figure 1 how the pair moved up and down in a price range before finally breaking through. As this pair had been in a powerful daily downtrend for quite a long time, the odds were always in our favor that we would have a positive result on this trade. What we effectively did was wait for a strong area of support/resistance to be broken, and then take a trade based on the break of an inside bar. In fact, the setup was several inside bars in quick succession, as you can see if you go back to the original article. The only downside to this trade was that our stop was quite wide, and as a result our target was quite a way away. However, I decided that taking into consideration the very strong downtrend, that it was worth taking and waiting it out. And that is exactly how it played out. A waiting game… which came good in the end. It just goes to show how important patience can be in forex trading, and how important it is not to meddle with your trades once you have put them on. If you can follow through with your trades and have faith in your original decision, then it will go a long way to providing the success that every trader craves.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>