XAG/USD Update 2

Filed under: Live Trades |

I thought that this pair was worth a second update following on from last week, as this pair has now moved even higher. The setup concerned is the one of the daily chart for the XAG/USD pair, and you can see this setup once again in Figure 1. The entry was the highlighted candle, which could have been entered at a 50% retracement of the pin bar, and with a stop loss just a few pips below the low of the pin bar. I actually had this order in, but then cancelled it after the proceeding candle as it had a bit of an upper tail. My original target was two times the risk.

 

Figure 1.

Figure 1.

However, had I kept this order in play, I would have reached my target and had a nice 2% rise on my bank. With the 8-day exponential moving average still crossed above the 21-day exponential moving average, this pair still has a lot of bullish momentum. Moreover, if anything, these two moving averages are moving even wider apart rather than getting closer together. If you had stayed in this trade, you would now be in profits to the tune of around three times the risk, and you could have moved the stop loss to breakeven, effectively giving you a risk-free trade. Staying in this trade might be a good move for now, as it seems that there is a good deal more bullish momentum in this one.

 

In hindsight, I count myself a little unlucky with this one. I was literally just a few pips away from my order being filled, and I only cancelled it due to a slight upper tail on the candle that formed the day after I made the order. This order could so easily have been filled, and if it had been, I would have made a 2% rise on the bank. It just goes to show what fine margins there are between success and failure.

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