Watch as I execute a live price action trade on the GBPUSD up +120 pips.
In this price action trade video, I go through the price action context, explain my trade location, stop loss placement, my final target, and why I did not use a confirmation price action signal.
Here’s the transcription for the video:
“Hello traders here. Chris Capre. 2ndSkiesForex.com
So, I want to share a live price action trade that I’m in with you right now. This is actually a trade setup that we have posted in the members commentary, trade setup commentary, in our price action course on Sunday and it activated on Monday and here we are on Tuesday and it’s well into profit and so…
I want to talk about this trade in terms of trade location, in terms of stop loss placement, in terms of take profit, trade management and kinda give you the overall price action context here. Now, just to make sure you know, this is a live trade, you can see this is an open position right now, this all matches. And also this says real right here. So FXCM, if it’s a demo account, that real will say demo, it will never say real. So you know this is a trade I’m in with my own money right now, that I only trade with my own money. And so, with that being said, let’s talk about the price action context first.
So, as we can wee, the GBPUSD has been relatively in a corrective structure range. It’s about 250-300 pips high, from 1.55 down to 1.52. Now, we had an impressive bull run, an 8 candle bull run into 1.55. But then what happened with all that bullish momentum? It ran into the big figure at 1.55, and it kinda triple tapped here. Suggesting that the offers were willing to hold the line here and kinda mount a challenge and stop this momentum. They were able to eventually reverse the momentum and show with strength that they could push this back down. And they did, 250 pips. And you can see this strength kinda coming in in a typical impulsive, corrective, and impulsive, corrective structure here.
So we had a relatively good idea in terms of trade location at 1.55, and so we said ok, we literally said on Sunday, look, we are looking to sell, if you’re bearish you wanna be selling at 1.55, and we don’t need a large stop loss on this. We feel that the corrective structure will hold and because the offers held 1.55 very cleanly which you can see here with the wicks all around the same height, we don’t need a large stop loss. If the wicks are much more varied, a short, a long one and a medium one, then that would show not only volatility but a wider range in the depth of the order book around 1.55. Therefore we would need a much larger stop loss. But we didn’t have that. We had a very clean reaction from the offers here at 1.55.
So we said ok, we’re gonna look to sell 1.55 and you don’t need a large stop loss. We actually placed ours, 34 pips above, which you can see here, stop at 1.5530, and an entry at .54969. We literally ended up top-ticking the market. As you can see the high was 1.5497. So by .1 pips we got literally the best entry by .1 pips. That’s not common, it doesn’t always happen that we get that perfect entries. I literally missed another trade today by a pip. That’s just gonna happen, that’s part of it. Sometimes you’re gonna get these little gems that hit perfectly. But when you find good trade locations, you should have relatively good entries, near where the market stalls and turns.
So, because of that, because of this reaction here, we can have a tight stop loss, you shouldn’t need a large stop loss if you can find good trade locations. Now, in terms of our target, the offers that held here at 1.55, they pushed it all the way down to 1.5250 before some impressive bullish momentum came back in the market. And the change of hands happened here. So we’re expecting the bears to try and target this. If they’re gonna show that they have equal strength in the market, then they’re gonna want at least tag this and say ok we’re gonna push you back to where you started. So that’s our target.
We do see an interesting role-reversal level here on 1.5375, so you can see this is an interesting role reversal level. The market might get stuck here, and if it does, we may take some profit and neutralize all the risk at that point. But if we get below this here, then I see relatively clear or smooth sailing down to .5250. So that would be a 250-pip profit on a 34 pip stop. So we’re talking about a +8R.
Briefly I wanna talk about the entry in terms of how we placed the entry and time and everything like that. And then we’ll wrap this up.
To make sure we didn’t place any confirmation price action signal. We don’ wait for confirmation price action signals. Those lower your accuracy, they lower your profitability and they give you worse locations. There was no pin bar on the 4hr chart, there was no pin bar on the 1hr chart, or anything like that. And on the daily chart there was an interesting one here but assuming you got the 50% you know, retrace tweak entry, you’re not getting in till here so you’re missing this.
Now let’s be generous. Let’s say you absolutely top-ticked the daily candle today and you got an entry. Where’s your entry? The high is .5445. Your stop has to be above .55 now. So you have a 55 pip stop with right now about a 70 pip profit. You’re barely up 1R at this point. We on the other hand got in at 5496 with 34 pip stop. So while you’re just cracking your first +1R, we’ve already got 4 times the profit as you do. So you can see how waiting for confirmation price action signals reduces profitability tremendously. In this case by 400%. And it gives you a much larger stop loss if you do it waiting for a confirmation price action signal and you might’ve even missed this trade completely. So it lowers your accuracy, and it lowers your profitability massively.
So that’s very important to note. Lastly, you shouldn’t have to be waiting for 2, 2.5 weeks for a trade setup to materialize. If you have to wait 2.5 week for a trade setup to materialize, then you’re not reading price action. You’re not trading, you’re missing opportunities like this all the time. ’cause these happen quite a lot and way more frequently than 2.5 weeks. We aren’t waiting for that long. We posted this on Sunday, it hits on Monday and we’re already well into profit not only on Monday but on Tuesday as well.
So, if you’re having to wait around for 2.5 weeks to find good trade ideas, then you’re not reading price action correctly and you’re not actively trading the market and if you’re not active, you actually slow your learning curve and you actually make it harder to build up your skillset. So these are a couple of points we kinda wanna mention and make sure you understand.
Now, if you are interested in learning how to trade price action the way we do, then make sure to check out my advanced price action course where we’ll teach you how to find premium entries like this, how to read the price action context properly, how to find trades that you don’t have to wait around for weeks on end. And how you can get better stop loss placement, a higher profitability on the same trade ideas.
So, if that seems interesting to you, make sure to check out our price action course. Also make sure to come by and check us out at 2ndskiesforex.com, where we post market commentary and trade ideas like this as well, along with a bunch of other free articles and videos.
Other than that, I hope you enoyed this video, I hope you enjoyed the explanation on this and the demonstration of how I trade and what I teach to my members. So with that being said, I wish you good luck in the markets, make sure to comment on the video below, what you got from it and other than that I wish you good health and good trading. Take care everyone.”