Dynamic Trader Forex Blog FXCPS.co.uk: GBPCAD Stopped Out.

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBPCAD : Day chart below.

Hello everybody, I hope you are enjoying the snow whilst we have it. It is amazing how everything in the country comes to a halt over 6 inches of the white stuff. (UK that is.) With the internet not effected, our trading continues as normal. I had mentioned on Monday that we would be looking at the 4 trades I was currently in. One of those the GBPCAD was stopped out last night, so I have chosen this to see why and when we entered etc.

I explained that I am comfortable trading medium to long term using the DAY charts for my analysis and each weekend I look at and replace likely entry's for the coming week. Any good candidates goes onto my watch list. As we will see if we miss a trade, then no need to chase the trade, be patient and await the signal to enter.

With the VI patrolling the sky's above price, we were presented with a double top kissing the VI. This started to produce lower highs and lows, resulting in a downward trading channel. We already had a strong support below and price soon started to act with a deal of predictability.

We will never know the ultimate top or bottom of a move, so despite missing the shorting opportunity at 1. , we waited and using our ESLT on the next reversal we were able to enter the trade with our limit order set for calculated profits of around 500 pips.

Once our limit order secured profits, we were then in the trade risk free, only for price to rise and stop us out. Should our stop loss have been set higher ?
That is for you to decide depending on YOUR rules.

There might be a further opportunity to come ?

Until then remember "The market is always right"

Trade with Passion

John Maher
Forex Analyst