Trade Examples

Screen Shot 2014-06-17 at 11.12.19

Video Transcription:

Hello traders, welcome to the Pro Trading Course and the third module, swing trades. Follow Global Macro Trends. In this lesson I’m going to show you a couple of examples of trades that I’ve taken using the techniques that I’ve shown you on this exact module, alright. So we’re going to start with a long play on the US dollar/Mexican peso. Now fundamentally, I wanted to go long on the US dollar because the fed has been starting to hike…had decided to hike interest rates or the Federal Funds Rate in the United States while the Central Bank in Mexico had kept the interest rates in Mexico unchanged. This means that the US dollar was appreciating, making the US dollar/Mexican peso exchange go up and the Mexican peso was depreciating which also was bullish for the US dollar and Mexican peso.

Trade Examples-Swing Trading

So this was the best risk to reward scenario that a bullish play on the dollar could have given or could have yield out. Alright. So I started looking at this bear bull zone, alright. That was being tested once, tried three times around the 18 level. Now if we go to the charts I’m going to show you where exactly was this bull bear zone. The bull bear zone was this high, is testing the 17 and…well the 180 level and this lows testing the 1807 level. This was my bull bear zone at the time. And if you notice, if you go back to the slide. If you notice I had a couple of Fibonacci clusters that I was looking forward to trade right at this zone.

I had a 6018 from the last wave up and I had 113.0 from this wave, alright. I’m going to show you how I manage them on the charts. This is the last wave of the US dollar Mexican peso to the up-side, you have the 6018 right here, okay. That was tested once and twice and if you go and take a Fibonacci from this low to this high you can see that the 1113 is exactly at the bull bear zone. So I took a long position here. Now, where is the first logical step to take profit? If we go back to the slide you can see that I took profit on the first part of my trade at 1873, alright. Which is the previous high of the overall structure. Let’s go back to the chart and I’m going to show you where it is. 1873 is about this level. So I took profit on the first part of my trade for around 640 pips. That is a huge profit, okay.

Trade Examples-Swing Trading1

When I was just risking 170 -180 pips, okay. So I took profit right here at this level and what did I do? Well, I moved my stock to break even and let the rest of it ride. Let’s go back to the slide. I took profit right here and then I let the rest of it ride. And as you can see here, we have a break through the upside but then we have a retest of this zone right here. So what did I do when the market came back and retested these zones right here and broke through the up-side, I moved my stops to the 1860 level. Why? Because if the market breaks with this previously tested zone, well my structure or my trade structure is no longer valid.

So I moved my stops to the 1860 level and let the second part of my trade ride. Now, the question is where am I going to take profits if I don’t have any more zones through the up-side? Well I’m going to use my Fibonacci tool. You can see that I actually measured the expansion from this…well this wave and retracement, okay. And I had this 16018 that was already hidden, alright. The 16018 was already hidden so what I was expecting was to hit the 227.2, alright. When the market or price hit my Fibonacci level, I closed all of my long positions, alright.

Trade Examples-Swing Trading2

Now I’m going to show you on the chart how I did that. I went out and I grabbed my Fibonacci expansion tool and I moved it from this low to this high, to this low and as you can see the 161…let me just look at the properties and exactly I have the 161 and the 7022, alright. So I have the 161 that was already hit and what I did here, if I use again my entry lines and my stop-loss lines you can see that I took profit right here at this level, then when this level was broken and retested, the retest went even further down right here and the price moved again to the 16018. I moved my stops to the 1860 level locking in a nice profit of around 500 pips. Now, after that I drew my Fibonacci expansions and when price hits the 262 around 1923, well I just closed my trade with an overall win of around 1150 pips.

Now, that’s a huge trade and as you can see, once price hits my overall targets on the Fibonacci expansion, price comes all the way down to my bull bear zone again. And had I not used all the methods that I’ve taught you here, I would have erased over 1000 pips in profit. Now, let’s go back to the slides and not only I closed my bullish pay on the dollar for over a thousand pip win but I went short after this huge rejection candle of my 227.2 Fibonacci expansion. And as you can see, well I made over 1000 pips on the way up and a thousand pips on the way down using the techniques that I taught you here. And you can see right here that I moved my stops as the market wanted me to move them, alright.

Trade Examples-Swing Trading3

The market tested again this previous highs where I close half of my position and then we had a retracement back and back to the 16018, alright. I mean I don’t use the 16018 as a retracement because it’s the expansion of to the upside but it’s still a previously tested level. So when we had the retracement back and then price started to move down I moved my stops above the 16018 and what happened here is that we had a push to the downside. Also a lucky push because the Mexican Central bank decided to hike rates overnight making for a stronger Mexican peso and an overnight drop on the US dollar/Mexican peso of around 800 pips which was a very good thing for me since I was already short from all the way up here.

Trade Examples-Swing Trading4

But I was short on technical, fundamentals helped me get to my target on the bull bear zone again. And lastly, this is a long play on the E-mini S&P 500 where while we were on the down structure, okay. But we hit a very strong bull bear area. You can see that I have the two red horizontal lines pointing it and we also hit the completion of a bullish harmonic pattern. This gave me a very good long opportunity that I took to my harmonics targets right here and then after the break out and the retest of my harmonic targets I let the rest of it run for a complete 100 points on the E-mini S&P 500 which is also a huge trade. Now, I know we haven’t seen or we haven’t learnt about harmonics patterns on the Pro Trading Course just yet but I am going to teach you or you are going to see on the fifth module how to incorporate harmonics into your trading.

Comments are closed.