GBPNZD 14 May 2021 Long Trade +2.78R Profit

TRADE REASONS:

GBPNZD charts showed the following when the trade was considered on 14 May 2021.

1. Daily chart: 10-day MA was angling up. Price retraced to role reversal S/R zone.

2. 4-hr chart: Role reversal S/R zone was tested after stochastic %K declined to <20.

The trade plan was to enter long at the role reversal S/R zone with stop placed 1x ATR below entry and take profit placed at the next opposing S/R zones.

GBPNZD Daily and 4-hr charts

ENTRY:

Entered long at 1.94599 on 14 May 2021 22.13hr MYT at the role reversal zone after stochastic %K declined <20. Stop was placed 70 pips below entry at 1.9390 based on 1x 14-bar ATR. Take profit was placed at 1.9640 at the next S/R zone.

EXIT:

The exit strategy was adjusted to a trailing stop mid-way through the trade. The basis for this was the currency index was showing GBP as the strong and NZD as weak based on 10-day performance, which suggested that the GBPNZD bullish trend was likely to be strong over the next few days. The initial take profit at 1.9640 was changed to a limit sell order to exit 50% of my position. It was filled on 19 May 2021 14.38hr.

The remaining position was managed with a 1R increment trailing stop, where the stop was raised to 1R when price advanced by 2R and raised a further 1R every time price advanced by another 1R. The price advanced until it reached 4R where my my last stop was set at 1.9670, i.e. 3R. It did move up any further after that but instead declined such that my 3R stop was hit at 1.96698 on 24 May 2021 19.52hr.

TRADE RESULT:

The 1st exit made +180 pips and the last exit made +210 pips against an initial risk of -70 pips. Overall the trade yielded +2.78R.

Disclaimer: 

Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.