Welcome to another entry into my financial markets trading and investing blog. Today, I’m analyzing a long trade I made in the Forex pair EUR/AUD. Read on to see how this trade played out.
Price wasn’t necessarily coming off the lows of a pullback here, rather price was back within the middle of the bands and appeared to be resuming it’s uptrend. Overall, price looked strong and there was a good amount of upside if the trend were to continue. Admittedly, the pattern on the 5 min chart that I set my entry order on wasn’t perfect; but I could still argue a base/a bit of a bull-pullback.
Entry – 1.6654
Stop – 1.664
Target – 1.6682
R:R – 2
Entry – 1.66542
At one point before triggering my entry, price wicked below my stop-loss, but there was a good amount of wicks in that area prior, so I left my order. Eventually, price made enough of a push up to trigger my entry in to the trade.
Exit – 1.66399
It was a relatively small spike, though, that made the push up and triggered my entry. It was, essentially, a false breakout and price fairly quickly reverted back to under my entry price. From there, price just pushed down more and stopped me out for a full loss.
I can’t see anything glaring that should have disqualified this trade; other than maybe the fact that the pattern that I set my entry order on wasn’t the cleanest bull-pullback I’ve ever seen. There were a lot of signs pointing toward strength, though, so I’m largely chalking this one up to simply being a routine loss.
Conclusion
Relatively quick losses are to be expected trading on the 5 min. chart, too — especially if I’m planning on maintaining the same ratios I’ve had in the past when I was successful (only winning about 49% – 51% of trades). That’s why I have to keep my eyes peeled and try to get in to more trades each day.
I’m in one other one now, and that might be it for today as I’m not seeing much volume and it’s already nearly noon eastern. Ideally, going forward, I trade more clean patterns, but I’m not sure how clean they’re going to get on the 5 min. chart. Either way, I’ve got a trade under my belt in my new system, so I call that a win.
Thanks for reading! Let me know in the comments what you thought about today’s trade, and stay tuned for more financial market analysis and trades!