Walking Through Each FX Setup with my Analysis

This week’s post focuses on 3 of my trade ideas from last week… here I will analyze each setup and explain all the angles connected to the trade: what went well and why, but also what could have been better. The trade setups were on the EURUSD, GBPUSD and NZDUSD.

EURUSD

The EURUSD showed bullish momentum and appeared to be breaking to higher price levels. However before a breakout occurred a correction took price that took price back lower. It was a good discount and offered an interesting potential to go long.

Price retraced somewhat deeper than my entry but the stop loss placement was safe and the setup survived. Price then went into my direction soared to 1.1450, giving me 80 – 90 pips profit compared to the live webinar call at 1.1360-70.

Price made another attempt upwards but bumped into double top. So eventually price did not hit my original target at 1.1550 because it failed to break above resistance. The EURUSD ultimately stopped moving and started to go sideways in a triangle.

The setup and entry were great. The target was not bad but sometimes price does not reach our initial targets and we as traders need to be flexible and adjust our plans accordingly. That means that when a double top is visible, traders need to protect themselves with managing the trade.

GBPUSD

The Cable was in an uptrend and clearly giving me a discount for a long. A position buy at 1.5350 got filled quickly and the stop loss below 1.53 held despite the retracement. After some struggle price slowly turned back up and eventually moved up very quickly. The trade then closed quickly for a full win, congrats on those pips!

The lesson here is that we need patience at the beginning of the trade, like with the GBPUSD. But we don’t want to give a trade too much time either, like with the EURUSD.

There was another potential trade idea on the Cable, a short scalp from 1.5484. The trade idea was actually perfect, but the entry was missed by 5 (!) pips… otherwise a 2^nd win in a row was a fact.

NZDUSD

The Kiwi quickly hit my entry level and bounced back up exactly from that spot. Obviously this was a great entry example. It is an entry that you want to have with each setup. Well, after that price quickly moved on to target and it turned out to be a quick win…. Fast profits are good because they do not bother the psychology and also free up more capital.

Traders, many green pips! Tarantula FX