Welcome to today’s entry into my Forex trading blog. Today, I’m talking through a long trade I made in the currency pair AUD/USD. I managed this one pretty well, it could’ve ended up so much worse. Read on to see how this trade went.
First of all, let’s start with my initial analysis from this morning:
This looks good this morning as well, similar to GBP/USD. Price has largely been up over the last couple of weeks, and showed a decent pullback yesterday/overnight. This morning, though, price is bouncing off of the lower band and is making a decent push upward. It appears to be returning to it’s upward momentum.
On the 15 minute chart, price had been pushing up for a little over an hour, and was pulling back for one candle. I used that candle as my entry/stop, and with a target at some resistance from earlier this week, I had a 2 R:R. I set an order, so we’ll see how it plays out.
Entry – 0.6624
Stop – 0.6609
Target – 0.6654
R:R – 2
Entry – .6624
Price triggered my entry pretty quickly — so quickly in fact that it was already above my entry level when I got the screenshot. Price remained fairly strong from there, and ended up pushing to within about 3 pips of 1R. I thought about the old adage “You can’t go broke taking a profit”, so I moved my stop to break even around this time.
Exit – .66239
Price fairly quickly reversed from there and pushed down enough to hit my stop loss. Since I had already moved it, it was a break even trade.
On the 2 hour chart, price had been in an overall uptrend, and was bouncing off of the lower band. RSI was right around 50, and I traded into a bull-pullback. Based on my rules, I did most things right here, so I can’t be upset about this trade.
Conclusion
The only things I could say, maybe, that could have disqualified this is the fact that the move that returned this to the upside was fairly outsized. It was a strong move to the upside, and it might have been exhausted. Price wasn’t in overbought levels on any timeframes I looked at; but I guess it was pushing through the upper band on the 15 minute chart.
I’ve seen prices ride the bands to the up or downside several times, though, so I don’t think that should’ve been a catalyst to disqualify the trade. And truthfully, it was break-even, not a loss, so I’m not that upset anyway. I just hoped based on what I saw that I caught a lot more pips here.
That’s trading, though, and at least I didn’t take a loss. Time to move on and look for more opportunities.
Thanks for reading! Let me know in the comments about some old habits that you’re still struggling to shake, if you have any. And stay tuned for more Forex market trades and analysis.