Trade Number 43, 44, and 45 – ANALYSIS and RESULTS

Filed under: Live Trades |

Well, our dismal January continues I’m afraid with two more losing trades that has now wiped out all of our good work in December. Trade number 44 was cancelled as our order was not filled, and trade number 45 hit the stop loss. Trade number 43 also resulted in a loss, but I would like to take you through the ins and outs of that trade right now.

 

Figure 1.

To begin with, take a look at Figure 1 and you will see the daily chart for the EUR/CAD forex currency pair. What you will instantly see is that the trend is bearish and is moving in a relatively smooth straight line. Price has then retraced a little and hit an area of support/resistance. This is a nice little area to be looking out for any price action setups on the intraday charts.

 

Figure 2.

Figure 2 shows the 4-hour chart for the same pair. As you can see, a very nice bearish engulfing pattern formed at the area in question, so I put an order in at a 50% retracement of the engulfing candle and set a stop loss just a few pips above the high of the move. My target was three times my risk, so that is a risk-reward scenario of 1:3. The engulfing candle was also at the upper extreme of the Bollinger band, which gave us four factors of confluence including the trend, price action setup, and the significant level of support/resistance.

 

Figure 3.

However, Figure 3 shows that the trade was unsuccessful. I still feel like the setup was a good one and in the long term if we keep trading these setups, we should continue to be profitable. Here are the official results:

 

Trade 43 = -105.61 GBP

Trade 44 = cancelled

Trade 45 = -100.25 GBP

 

Bank = 9,924.04 GBP (-0.75%)

 

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