During this past week we've seen some large rallies on a number of pairs. A number of which I previously highlighted for opportunities in my weekly forex outlook. In this article I share 2 trades which came in with great profit this week. As always I break down what I did and why.
Now I've been talking about the EN a lot in recent weeks. I took a short whilst waiting for a long ( you can find details on that trade here if you missed it) and now the long opportunity that I've been waiting for finally arrived. I exited my short last week and price arrived at the demand with clear red candles showing a lot a profit potential. The setup looked perfect on the daily.
The view on the H1 was a great one too. A H1 QM formed with the closest supply being engulfed and there was nothing to stop price for over 100 pips. This was an obvious one to take. If you look at this pair now you'll notice that price has rallied much more since my exit. That will happen sometimes.
The entry was the same as usual. After an engulf of the nearest supply on the 5m I entered the trade at the demand below it. Price did drop down past the 5m demand but my stop is always behind the H1 or 30m SD level so there was no issue there.
The profit on this trade was well over 100 pips. Simple setup, simple trade.
This pair hasn't featured on my weekly outlook recently and that's simply because I didn't think that price would reach a significant level any time soon. I still had SD levels marked up on my charts though. Price gapped down almost 200 pips at the start of the week and soon after that, I had an alert on my phone that price had reached the daily demand level I had marked up. With the red candles and the large gap, There was a lot of profit potential for this trade.
After price hit the daily demand, the nearest supply level on the H1 was engulfed pretty quickly. A 30m demand level sat below which I believed to be the source of the engulf so I waited to see what happened if and when price returned to it.
After the nearest supply was engulfed I entered at demand. One thing to note here is that the reaction at the 30m demand was immediate. Price engulfed that opposing level straight away. Ideally that's what you want to see. It's a good sign that price is going to turn higher.
This was another great trade with lots of pips.
The One That Got Away
The GBPAUD was the one that got away from me. Price reached the demand I identified in my last weekly outlook article and rallied as expected but unfortunately it didn't give me an entry. Price has run on for hundreds of pips now so I'll be waiting for shorts instead.
I hope you found this useful