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| GBPUSD Weekly |
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| GBPUSD 4H |
I'm pretty pleased with a trade I made yesterday. GBPUSD weekly's chart had a pin bar at resistance. On the daily chart there was a huge drop last Friday (Not shown). As such I was looking for a pullback on the 4H to short this pair. It came in the form of a bearish pin bar at intraday resistance and the 20EMA. In fact it was also a bearish engulfing bar, and the previous candle also looked like a pin bar. I shorted at the close of the pin bar and not long after prices tanked. The image above showed how I managed the trade. I must admit I was very aggressive in profit taking due to the Christmas hols. The reason why I took quarter profits is because that level was a strong confluence support of the 4H trend line, the daily 20EMA, and two Fib levels (I'm studying James16 and he utilizes Fib confluence levels to great success so I'm experimenting a little with it now). I now have a quarter position left just in case prices decide to tank even further. Due to the bearish picture of the weekly and daily chart, I'll continue to watch this pair for any shorting opportunities.
The main point of this post is the taking of half profits and shifting stop to BE as soon as it seems feasible. This is exactly how I want to manage my trades from now on. I hate watching profits turn to losses and so this method of stop management suits me well.
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