Live Trade Video -7 Pips USD/CAD 4hr

USD/CAD Price Action Based Short Reversal

You can’t win them all. I shorted USD/CAD yesterday after seeing a promising reversal set up. Unfortunately after hours of painfully slow movement price went against me. I was able to close this trade out with -7 pips.

In the video below I take you through the trade live. I also explain how I used Price Action to save myself 13 pips by exiting early.

This trade did end up working out in the end. However, I made the right choice to exit. The price action was against me and this trade was definitely over. The only reason it ended up working was because we happened to get some positive Canadian news which turned the trade back in my direction.

In my experience it is not smart to hold a losing trade through news in the hope it will turn into a winner.

Enjoy the video.

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15 thoughts on “Live Trade Video -7 Pips USD/CAD 4hr
  1. Seems like this one could have worked out nicely for a +-40pip profit if you left it in. Well on its way now, but rather safe than sorry. After how long do you usually give a trade room to start moving in a slow market like the last 2 days?

    1. I usually give it as long as it needs. However, if I see signs of the Bulls gaining control whilst I am selling I tend to tighten my stop to break even.

      This trade only worked out because of CAD retail sales.

  2. Very insightful video. It seems USD/CAD ended up getting within a few pips of your initial target, before hitting your stop, but I understand why you exited when you did. I am finding managing trades to be the toughest part of my trading. For the most part, my trades tend to hit their targets before hitting their stops, but sometimes there is price action during my trade that signals it may go against me, and it is tough to not second guess yourself when this happens. For me, I’m learning I can’t be married to my initial positions and instead have to constantly read the price action while in the trade

    1. It only hit the target because CAD retail sales came in above consensus.

      I check price action every 4 or so hours when in a trade. It is hard not to second guess yourself. I use some very strict rules when deciding if I should exit early.

      In this case the trade would have hit profit. However, I am confident if the CAD retail sales had come in on consensus this trade would have failed.

  3. Nick, if you had your stop above the high of the indicision candle where it probably should have been then you would still be in the trade and in profit. But i love the honesty.

    1. Did you watch the video?

      I was not stopped out on this trade as price never hit my stop.

      I exited early because there were clear signs of buyers entering the market.

      The only reason this trade worked out is because we got some very positive CAD news which sent price plummeting down.

      I do not trade fundamentals so I would not rely on a news report to turn a failing trade around.

      I closed out because buyers entered the market. The economic releases coming in off consensus is the only reason sellers regained control.

  4. Nick, thank you for your learning, for me fundamentals are very important, the economic news sometimes destroy the technical analysys. Anyway, you are one of he best Forex Masters.

  5. Hi Nick, thanks for the video. A few questions if you wouldn’t mind answering:

    – In setting your initial stop, what’s your logic or decision making process? The high of the previous few candles? You seem to sort of place the stop by eye but I’m interested in your thought process?

    – The S&R method seems to be less rigid as say an “Enter when RSI>50” type method, so should we be setting out stops and sticking to them religiously? Is taking a trade off the market before it hits our stop (guessing where the market’s going before it’s gone) similar to staying in a trade once it’s broken a stop, with the hope that the trade reverses?

    – Is there any indication of a light S&R zone around the indecision candle that got you worried?

    Thanks again for the video.

  6. Hi Nick,

    Good video and well explained. Actually I was surprised you took the short. The reason I say that is that if you look at a weekly chart, you can draw a nice support line and price has just bounced off that on the 14th and started to move away from it heading north from then on. On the 4hr chart you can see it was making higher highs and higher lows. At the time you took the short, the high was nay higher, but one of the 4hr candles did close higher than the last swing high.

    Anyway, I make heaps of errors too – just trying to iron them out! But I find that when I look at the weekly chart I get the overall direction, then most of my trades are off the daily chart (there was a nice pin off the support on the daily that I got in on) and sometimes the 4hr charts. I don’t go any lower than that though. Actually I’ve found that I’ve gradually moved up from 1m, 5m, 15m charts over time and now trade using weekly, daily and 4hrly only.

    Just looking at the charts, USD/CAD longs should be targeting about 1.02.

    Cheers and keep the vids coming – really interesting!


  7. Hi Nick,

    Thnx for the vid.

    As you mentioned in the vid price did eventually go in your favour. I guess if you were 100% ok with the money you risked you would’ve let it run and came out with a winner.

    This is a great lesson for me to learn as i almost always tamper with my trades and then wishing i hadn’t. Thnx for sharing as we all learn frm each others experiences.