We have just exited the open sell position we had on NZDCHF... a little earlier than hoped as the market moved against us. However, we were able to bank a profit amounted to a 1% gain on our trading account and so too the trading account of our clients who follow our forex signal service.
As with all of our trades we recommend through our forex signal service, we had a number of reasons in support for a sell and on the 25th April, we placed an order with our broker to enter us into the market at 0.8015 with our protective stoploss at 0.8088 but a long term target at 0.7617 giving us fantastic profit potential.
We identified a bearish pin bar reversal at a multi-year high with cyclicity moving into the level which indicated to us that it was on the verge of breaking down. This, coupled with divergence and a number of other factors prompted us to alert clients via our forex signal service as well as set up the orders on our own account.
We were triggered into the trade on the 26th and it went in our direction over the course of four days. However, it failed to break through the first technical level in its way between our entry price and target, and started to reverse on us.
Recognising what was going on, we moved our stoploss to 0.7959 on the 2nd of May as a pre-emptive strike in order safeguard the profit we had already made to that point and we were automatically exited from the trade on the 3rd when the market reached this newly adjusted stoploss.
Even though it had a reward potential in excess of 10% and dashed our expectations of making more money, we were happy to exit making money without falling into the trap of trying to prove the market wrong and staying in this position for the sake of it watching our profits evaporate.
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