Live Trade – Silver

Filed under: Live Trades |

I had a very nice trade on the pair for silver yesterday (XAG/USD). The pair has had a lot of bullish momentum recently and as such; I have been on the lookout for any bullish price action signals when it has pulled back to value areas.

 

Figure 1.

If you take a look at Figure 1, you will see the daily chart for the XAG/USD pair. It is very clear that the pair has a lot of bullish momentum. If you need any confirmation of this whatsoever (and you really shouldn’t!), you can see that the 8-day exponential moving average is crossed well above the 21-day exponential moving average, and that the two moving average have been slowly moving wider apart. This tells us that the bulls are well in control, and that they may be for some time.

 

Figure 2.

Figure 2 shows the 4-hour chart for the same XAG/USD pair. What you can see here is that price had been moving up with a stepping action, where old resistance becomes new support. I have highlighted the candle that I used as the setup for my trade here. This is the pin bar that is bouncing off of the previous resistance level, which has again become a new support area. What I did when I saw this was to put an order in to go long at a 50% retracement of the pin bar, with a stop loss placed just a few pips below the low of the pin bar, and a target set of two times the risk.

 

As you can see, this trade came off very nicely and very quickly for a 200 GBP rise on the bank. You can see at my published trades (at: http://www.myfxbook.com/members/jjrgaskell/daily-trade/357261) that we are now recovering very well from that drawdown, and are back in some nice profits.

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