GBP/USD Live Reversal Trade Video (+34 pips)

In this live trade vid I trade an indecision pattern that forms on a trend line. This is pure price action trading and it ended up being an awesome trade. Best thing is I go over everything in detail. I explain:

  • Why I entered the trade.
  • Why it worked out.
  • Why I set my entry order where I did.

Check out the video below.

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29 thoughts on “GBP/USD Live Reversal Trade Video (+34 pips)
  1. Nick,
    As usual an excellent example of one angle of your trading strategy. Many thanks.
    Whilst you aim to make say 100 pips per week or so, do you ever equate that to actual money ie do you target an amount per week. At a £1 a pip it wouldn’t make one rich but at £10 a pip it could make one more comfortable.
    Regards
    Trub

    1. @trub:

      Yeh I equate it to a money value. It is roughly $20-$40 USD per pip depending on the trade. Which in pound is £10-£25 per pip. I will be opening a spread betting account with GFT soon. If all goes well I will trade £15 or so per pip.

  2. Hey Nick,

    Great video, made me understand the price action and the psychological levels, and how it plays out into the rest of the trading.

    I also, traded a reversal of GBY/JPY today, and made around 60 pips, but it’s a demo account, so I guess it’s different.

    Currently I’m just saving money to open a real account.

    Btw, what website were you using for the FOREX news ?

    1. @Langknow:

      Awseome, 60 pips is a great trade! I use forexfactory.com for news. It has the best calendar on the net.

  3. The entry could have been earlier, if you were at your computer, it could have been after price went above the previous candle highs.

    To ensure a profitable trade after the news, you could have entered a stop at say 28 pips profit at the time you closed out and stayed in the trade. If price went against you then you would be closed out at your stop.

    1. @ColinJ:

      From the way I trade, the entry could not have been earlier. I explained my entry in the video. The entry had to be BEYOND the psychological level. This is because psych levels often act as support and resistance and can very easily reject the price. More importantly, had I got in at the previous candles high at 1.5740 the drawdown would have been over 35 pips! Seeing as my target is 50 pips and my stop is 35 pips I would have been taken out, had I entered where you suggested. Now, you might say that I should widen my stop but the psych level could have easily pushed the price down 50, 60 or 70 pips. I placed my entry after the psych level, for a very important reason, and today’s trade illustrates that.

      As for my stop, had I set it at +28 pips I would have been taken out when the price reversed. I did a little bit of research on the news release and I expected it to be slightly negative for GBP. So I had a feeling it would reverse. To stay in this trade my stop would have been below 1.5783 which would be roughly +18 pips.

      On the other hand, I could have partially closed my position. I could have closed half my position at +34 pips and left the other 2 positions open. I would have moved my stoploss to breakeven or just above breakeven. However, I’d exceeded my weekly target, there was news due out and as it’s Friday I closed my position out in full.

  4. Nick: I learn too much from you in this video, you show to us the deep of your analisys, I Agree about the News, is like a razor of double edge, or something very close to gambling. Regards.

  5. Hey Nick,

    Nice job! Most mentors/teachers don’t put their account where their mouth’s are. It is very helpful and confidence building to see you make an actual trade. Hearing your thought process along the way was a big help.

    More!

  6. Nice trade and explanation Nick, thank you.

    Also watch out for a posible inside candle setup on GBP/USD 4 H.

    Regards Hugo

  7. HI Nick

    Nice trade and analisis and thanks for taking the time to shoot the video, it cost you ten pips, so a big thank you is due by all

    Duncs

  8. Hi Nick
    well done, I took the same trade just my entry criteria have bee slightly different and I exit with 120 or so pips, would like to upload the screenshot but cant find a tool to do so
    mea

  9. Thanks again for a very clear view into a trading mindset, Nick. One question: let’s assume that news wasn’t coming up and you took profits before potential resistance at the psych level; would you or could you then consider re-entry after the psych level is broken and possibly use the area just under the psych level for your S/L? Look forward to you hearing/seeing your perspective. Thanks again.

    1. @noob4ever:
      I wouldn’t exit and enter again. Sometimes a trend has mini-reversals that only last 50-100 pips. The price then resumes in the original trends direction. So if I where to exit and then enter a new position I would be ignoring my trading plan. I would be entering a high risk trade without any type of entry signal.

      However, there are a few things I do to extend good trades. Drop down to the 1hr or 15min chart to read price action. If the price action suggests the reversal will continue I will close 25%-50% of my position out and move my stop loss to break even. I would then hold the trade until my price action analysis signals an exit.

  10. Also, thanks to ColinJ. That’s another way to approach staying with the trade. Still curious though if re-entry is possible given that the trade was exited.

  11. Buddy,

    As i stumble a good post like this, i will leave my comment and share it with the rest of the world..

    keep it up.!
    Thanks

  12. Thanks, Nick. It’s great to see the whole process in sequence… What you were thinking before, during, and after the trade. Sheds a lot of light on the intricacies that make all the difference.

  13. Nick sorry you lost out on 10 pips profit shooting the video, but it was a pip of a video. I appreciate your honesty and candor making your videos. You don’t show how you made 80 pips on a non-trade but 34 on a real one. Well done. Very clear info. Glad your back making the videos. Also like the bit about not wanting to gamble on the economic news. This a video that reflects the vagaries a pro deals with in his trading. Well done.

  14. Doing ok, working on my own long term strategy, which is working (making money) but its early days to say Im successful with it, I think you’ve got your own long term strategy too right ?

    I did try day trading for a while but lost too much money on it, I didnt have the right mindset, confidence is key me thinks.

    Thanks for all your help Nick, great website.

    1. @visulube:
      yeh I have a long term strategy. I opened a trade with it a few weeks back that is still dancing around break even. Day trading is not for everybody and yes confidence is the key. Thanks visulube!