Trades 58 and 59 – ANALYSIS and RESULTS

Filed under: Live Trades |

 

Well, we had a couple of trade alerts yesterday, and one of them came off and one of them didn’t. The one that didn’t was a sell trade on the AUD/NZD forex currency pair, which hit our stop loss by just a few pips before capitulating downwards – so a little unlucky there. The other trade was successful, and I’ll take you through that trade right now.

 

Figure 1.

To begin with, take a look at Figure 1, which is the daily chart for the USD/CAD pair. We already had a good trade on this pair just recently, and we are looking to take advantage of that same downward momentum. You will see that the recent momentum is still down by seeing that the 8EMA is below the 21EMA. Price has retraced slightly to a significant area of support/resistance (marked with a horizontal green band), and this is where we should be on the lookout for any price action signals on the daily, 4-hour, and 1-hour charts.

 

Figure 2.

Figure 2 shows the 4-hour chart for the USD/CAD pair, and what you can see here is a very nice bearish engulfing pattern at that aforementioned area of support/resistance. I set a sell order at a 50% retracement of the bearish candle, with a stop loss just a few pips above the high of the move, and a target of two times my risk.

 

Figure 3.

Figure 3 shows that the trade came off very nicely, and our target was met quite quickly for a 2% rise on the bank. Hopefully, this will be the end of the terrible drawdown we have experienced in January (it’s Sod’s Law that I should start this trial now!), and we will start getting back into profits fairly soon. Here are the official results.

 

Trade 58 = +198.28

Trade 59 = -104.09

 

Bank = 9,712.61 (-2.88%)

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