The Daily Trade – Weekly Review

Filed under: Live Trades |

 

Well, the trades for last week in our Daily Trades turned out to be a bit up and down for a very slight 0.65% profit (based on a bank of 10,000 GBP and a risk of 1% per trade). You can see the rundown of these trades proofed at:

 

http://www.myfxbook.com/members/jjrgaskell/daily-trade/357261

 

Our profitable trades came on the XAU/USD (gold) and the GBP/JPY pairs. We are currently in a trade on gold off of the daily chart, but we also took an intraday trade on the 4-hour chart that came of very nicely for a 2.5% rise on our bank. I would like to briefly take you through that trade right now.

 

Figure 1.

Figure 1 shows the daily chart for gold. As you can see, the pair has been stuck in trading range, and it is once again bouncing off of the top edge of this trading range. As well as taking a trade off of the daily chart (which we are currently in profit with) with an inside bar breakout, we also took a trade of the 4-hour chart.

 

Figure 2.

Figure 2 shows the 4-hour chart for gold, and I have highlighted the pin bar in question. This came after a tight inside bar. A pin bar in the direction of the trend after an inside bar is often referred to as a ‘fakey’ setup. We took this trade at a 50% retracement of the pin bar, and easily made our target of 2%. In hindsight, our risk-reward setup could have been much better, and we could have perhaps made around 5%. However, we cannot know this before the trade is in play and therefore, our decision was probably the correct one – especially given that we already had one short trade on gold, and this in effect doubled our risk.

 

Bank = 9,590 GBP (-4.1%)

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