First demo trade this month. And a win!
GBPAUD. "Continue reading" for more.
Played the bearish pin bar at the the 61.8 Fibonacci retracement level.
The pin wasn’t the textbook “hanging-out-in-space-on-a-swing-high-or-low” variety, but it was a trend continuation signal in my eyes having both touched the bearish trend line and rejected the 1.62 round number. (See thumbnail at right.)
Importantly it was WITH the trend!
(A few losing trades logged here were not, including the most recent debacle on thise very same currency pair. Go figure.)
My only major concern was the whole setup’s proximity to the historical low 1.60-ish area, hence the pin bar retracement entry.
I worked out my position size based on the relatively tight stop afforded by the retracement entry (even so, I allowed a generous stop loss buffer above the high of the pin) and my “maximum-2%-of-account-per-trade” rule, and placed three sell orders of roughly equal size.
Price was already floating around the retracement level when I noticed the set-up, hence the slightly staggered green sell order lines on the thumbnail.
Placed take profit target for one order at 1.61 for a 72-pip gain.
Moved stops on the two remaining orders to better than break even and set a profit target for a second order at 1.60 for a 176-pip gain.
Then as I was playing around with trailing stops for the third order I accidentally closed the trade at a little below 1.60 (1.5993) for a 185-pip gain.
A little annoyed about that as price has continued down to test historical lows as I expected it would.
But it’s a win! The average gain for the trade was 168 pips, which goes into the pips gained column!
Disclaimer: Nothing in this post or anywhere on this website should be construed as “advice” in any legal sense of the word. (I am not “qualified”!) You make your own decisions.
GBPAUD. Trend continuation setup. Pin bar off trendline (since redrawn) and round number 1.62.
