Analysing A Recent Trade I Took III

[moonchild]

Hello everyone, continuing my series of analysing the trades I took.

Well, I entered this trade yesterday in the evening, AUDUSD is a currency pair i learned with, because while I was learning forex my mentor advised on using only one currency pair which I think really helped me with focus.

As you can see from the left side, price made a double bottom, I indicated that by drawing a horizontal line on top, double bottom is a chart pattern that when it happens it signifies downtrend, I didn't get in at first because I'm not around and I missed the second entry, you'll see that price kind of come up and then a bearish engulfing candle formed and it slammed the price down.

Finally I got in after a massive pullback, in forex lingo we call it retracement or lower high.

I opened two positions and I left it to run over the night and when I woke up today I was in massive profits.

After I took this screenshot, I moved my stop loss to protect my profits and let it run.

Honestly, I'm starting to like swing trading style because I'm not always available to monitor charts which makes scalping hard for me, I'll just stick around and see how much AUDUSD is gonna pay me today.

I hope you've learnt something, ask questions If you have any.

 

[Victorial]

That was great. I just learned some vital lessons. One of them is to stick to a currency pair and understand how it works before you can add more pairs. One of the pairs I had detested so much is XAU/USD. Gold has really dealt with me and I am not going to trade it anymore. I got more than what I bargained for today as I lost $37 trading gold.

In your chart, I could not see the bearish engulfing pattern, or am I missing it? It is not fully an engulfing pattern and I must say you were lucky enough to end in profits.

More updates please

 

[moonchild]

@Victorial I'm glad you've learned something from this trade, it's true focusing on one pair will shorten your journey to mastery, because your attention will be focused on that coin alone, I'm also sorry for your loss on XAU/USD, gold is known to be a highly volatile instrument, I've never trade with gold but I have played with on demo.

If you look carefully you'll see where the red candle engulfs the bullish candle it then consolidates for some hours and crashed down finallying, when I see opportunities like this I'll go to the smaller timeframes and look for perfect entry and a tight stop-loss.

 

[btaliat]

I do follow your chart explanation on every of your trade because I really want to know how the knowledge of candle pattern can really help me on making much profit on forex investment. I could clearly see from the chart that the last candle that was formed is red. Which should signify nothing else than bearish, how come you still said you made a lot of profit even after bearish candle.

 

[Kingstone]

@Victorial I'm glad you've learned something from this trade, it's true focusing on one pair will shorten your journey to mastery, because your attention will be focused on that coin alone, I'm also sorry for your loss on XAU/USD, gold is known to be a highly volatile instrument, I've never trade with gold but I have played with on demo.

If you look carefully you'll see where the red candle engulfs the bullish candle it then consolidates for some hours and crashed down finally, when I see opportunities like this I'll go to the smaller timeframes and look for perfect entry and a tight stop-loss.

I think I get what @Victorial was saying. A bearish engulfing pattern means when the bullish candle (green) is completely engulfed by at least 50 percent of a bearish candle. And I did not think it met that requirement. I could have taken the trade also. I adore your strategy a lot. It shows you understand the market movement.

I will love to learn more from you. Can I DM please?

 

[moonchild]

@btaliat if you look at my entry I mean where I sold, you'll find out that, there's a bearish engulfing candle(the long red candle) after that you'll also notice that the whole market movement is down, this is also another indication for a sell, there's also what we call retracement, In Forex, after an impulse wave we await a retracement also know as correction move, these two reasons convinced me to take the trade.

I then went down to the lower time frame and wait for an entry, the reason why I do this is to tighten my stop loss to a few pips.

 

[Setho]

To be honest that is what a lot of people would have wanted to go with but I usually believe that whenever a particular level by to support or resistance has been tested so many times without having a very reliable rounded re test then it makes it even more weak. At this point it is just best that you should trade within the level using your support and resistance and continue to flip in the opposite direction with your stop loss immediately above the zone. This is going to at least protect you from any kind of massive swing in price.