This was a Gold (XAUUSD) trade taken during our Live Tokyo VIP Zoom Session, where we entered a 10.0 Lot Size and banked 8 Pips for a total profit of $800usd on the 5 minute timeframe.
Lets break down Lets break down the psychology of this trade:
A) Tokyo opened with Gold selling off creating a bearish downtrend, with lower highs and lower lows
B) Gold established a 5 minute Support Level which held for 40 minutes at $1761.42
C) We identified a Descending Triangle pattern and watched as volume approached the Apex of triangle and watched for volume to break bearish and close below the 5 minute Support Level $1761.42 (B)
D) The retest/confirmation candlestick followed where it got rejected, and continued bearish – we used the support level as the new resistance level trading forward. We entered a Sell Entry at $1761.23 (See MT4) with a 10.0 Lot Size
E) Price action continued bearish creating lower highs and lower lows, where we eventually took profits after an 8 pip drop and secured $800usd in minutes of trading
This trade is a great example of the Power of Pips, just 8 quality pips with higher lot size can profit $800usd
**It is always important to understand to take partial profits, because price action can reverse in the opposite direction. Secure partial profits, and leave remaining profits with a breakeven stop loss as price action may continue bearish**
Congrats to everyone who banked pips on this Live Trading session and learned during this session
This trade illustrates that trading with the trend can be very profitable once you learn price action, support and resistance and divergence. Scalping can also present opportunities to countertrade the trade but proper risk/account management must be used.
These volatile markets can be very erratic and its always best to use proper risk and account management while trading.
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Broker: Fusion Markets