We have now exited our end of day sell on USDSGD – a pair we don’t often trade but when we do, it has traditionally been good to us! We traded this on the daily and the market gave us a swift verdict.
As with all every trade idea we share through our forex signal service, we had a series of reasons in support of our decision to go short and this added to the probability of it going our way.
We identified a bearish pin bar reversal on the daily chart chart which closed on the 8th July 2013 at a minor level of resistance at 1.2844. This gave a clear impression that it was a sell zone, with the 1.272 Fibonacci extension overlapping with the bearish pin bar reversal as an added confluence. This, coupled with two additional reasons which cemented this as a trade with very high probability.
We send out the forex signal USDSGD that evening to our clients on our forex training programme, Ultimate, and placed this sell order on our own accounts. On the 9th July we were in the trade and over the course of the next three days the pair fell like a rock...in our favour.
On the 9th July we took this trade short on the SGDUSD daily chart
We trailed our stoploss strategically along the way. Once we are in the trade it is always a juggling act between making sure profit is banked but also giving the trade has enough room to breathe. After all, if you fall into the trap of aggressively trailing your stop, you run the risk of forfeiting profit potential.
On the 24th July, the market retraced after its sell-off and this hit our stoploss, exiting us from the trade at a profit of 4.78%. The clients who liked the look of the set-up and the logic behind it also made the same.
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