Hello everyone. I wanted to post some daily chart Forex setup about trades that were taken based on the night time forex trading strategy that was outlined in previous posts. The first chart is of the AUDUSD. See below.
This trade was not a successful one. We did receive a pin bar setup right at support so I thought price would break through. But of course it did not and price reversed back up. As I stated earlier not all trades will be winners, it's all a part of trading as long as you traded according to your plan. There is no need to feel upset or discouraged just wait patiently for the next setup.
The next daily chart forex setup that was taken is the EURJPY inside bar pullback setup which is still currently active. See below.
Price had a strong bearish run showed by the EMAs nicely spaced and pulled back to form a inside bar. In this case we had 2 inside bars. So I applied the fib tool to set stop loss, break even and profit levels. My stop loss is agressively set to the 38% level instead of the 0% level because of the size of the outside bar, which is more than twice the ATR(14) value. In these scenarios you can use the more agressive stop which will increase your risk to reward ratio.
Break even is set to 200% level where we will lock in 1/2 stop loss in proft and our final profit level is 261%. In the coming days we will see how this unfolds. Remember we hold the position until we either get stopped out or price close inside the 8 EMA. This removes the emotions from the trade and just let it play out.
A identical entry also taken is the CHFJPY, which moves in correlation with the EURJPY. See below.
We will monitor these 2 entries and provide an update in the coming days. Until next time happy night time trading.