Good afternoon Subscribers,
Our trailing stop was triggered at 1327.2 so we managed to bag an extra 20 points by using the trailing stop on this occasion. So, from set up to exit let’s take a look at today’s trade.
Our automated trading system triggered in the early hours at 03:08 GKFX time, which is 2hrs ahead of the UK. Automation has so many benefits for us – it takes the emotion out of the decision making and allows us to trade around the clock, so our overseas subscribers in different time-zones also get trade alerts during their trading day.
Let’s first look at the set up. The chart below is a zoomed-in 4H chart – notice where the 200-bar Moving Average is (the red line) at the point we opened (circled in white)…right around 1336. We’ve also got the 38.2 green fib level at 1336, so a good place to expect a reversal. Also take note of where the 50-bar Moving Average is (the orange line), just shy of 1339 – this is what was used for our stop.
Our trailing stop was triggered at 1327.2 so we managed to bag an extra 20 points by using the trailing stop on this occasion. So, from set up to exit let’s take a look at today’s trade.
Our automated trading system triggered in the early hours at 03:08 GKFX time, which is 2hrs ahead of the UK. Automation has so many benefits for us – it takes the emotion out of the decision making and allows us to trade around the clock, so our overseas subscribers in different time-zones also get trade alerts during their trading day.
Let’s first look at the set up. The chart below is a zoomed-in 4H chart – notice where the 200-bar Moving Average is (the red line) at the point we opened (circled in white)…right around 1336. We’ve also got the 38.2 green fib level at 1336, so a good place to expect a reversal. Also take note of where the 50-bar Moving Average is (the orange line), just shy of 1339 – this is what was used for our stop.
The 1H chart below shows that around the same area of our entry we’ve also got the 20hr Moving Average (the green line) providing resistance around 1336.
On the 15M chart below, we show a new Fibonacci retracement in white – from the 1341 high yesterday to the 1330 low. The levels on this one were quite close together (which incidentally you can see how that congested price movement through this morning) – but because of the resistance levels mentioned earlier from the higher timeframe charts, you can also see additional weight added to those with the 50% and 61.8% levels from this fib retracement around 1335-1337.
This trade was triggered off of the 5-minute chart, which you can see below. Given the levels of resistance outlined in the higher-level charts, when a clear-as-day shooting star was formed on the 5M with price failing to close above the 50% fib level, and also with RSI having entered the overbought zone, we took that as the signal to enter. Our stop was at 1339.5 above the 50-bar MA on the 4H and we set our target at 1329.2.
After a short climb higher to the 61.8 fib level, price quite quickly reversed in our direction – it’s reassuring when you get early confirmation – finding support at the 23.6 fib level. This area coincided with the 50-bar MA on the 15M and the 50-hr MA on the 1H.
As the morning unfolded we had a rising head-and-shoulders pattern form on the 15m, along with the triangle pattern shown in the chart below. When price broke out of the triangle we put you subscribers on alert that we were changing strategy – initially bringing our stop to below our entry and pushing our target out to give us some time to react if price fell sharply as we wanted to switch to a trailing stop at 1330 when the head and shoulders patter broke.
As the morning unfolded we had a rising head-and-shoulders pattern form on the 15m, along with the triangle pattern shown in the chart below. When price broke out of the triangle we put you subscribers on alert that we were changing strategy – initially bringing our stop to below our entry and pushing our target out to give us some time to react if price fell sharply as we wanted to switch to a trailing stop at 1330 when the head and shoulders patter broke.
Our prediction came true a couple of hours later with price falling sharply. We switched to trailing stops, again letting you guys know, and watched as price went beyond our initial target to bag an extra 20 points.
We’re now flat, waiting for the next set up and looking forward to another winning trade!