Live Trading Example – Bullish Trend Bounce

Bullish Trend Bounce - Live Forex Trading Example

Hello Forex Traders! I have a new trading example for you on the EURUSD chart. I managed to trade a bullish trend bounce on the 15 minute chart and to lock in some guaranteed profit. The fact that I adjusted my Stop Loss order above my entry point saved me from a big danger.

Signals of the Bullish Trend Bounce

  1. I spotted a Spinning Bottom candle pattern that appeared after a a price decrease.
  2. I spotted a Hammer Reversal candle pattern that came right after the Spinning Bottom.
  3. The price was actually testing a bullish trend on the 15-minute chart, which was the reason to expect another bullish trend bounce.
  4. The trend was getting tested for third time, which made me think that this might be a 5th Elliott Wave.
  5. Waves 2, 3, and 4 were responding to the Elliott Wave requirements.

Stop Loss and Targets of my Elliott Wave Trade

According to the Elliott Wave theory, there are two potential targets of Wave 5:

  1. At 100% of Wave  4
  2. At 161.8% of Wave 4

I put my Take Profit order at the bigger target (161.8%) in order to stay in the market in case of a major price move.

I put my Stop Loss order below the bottom created between Wave 2 and Wave 3 in order to handle eventual price extremes caused by high volatility.

Live Trading Example

Notice that the price increase came rapidly and I was not able to react with closing the trade near the first target. This is why I though it will be better to adjust the Stop Loss order on 6 pips profit and stay in the market for another impulse, instead of holding the trade as it is. This protected me from a bigger danger on the chart.

The United States announced a better than expected ADP Nonfarm Employment Change at this moment. The release was for 263K on a 187K forecast. This cased a very sharp price drop on the chart, which went below the purple bullish trend line. Fortunately, my adjusted Stop Loss order closed my trade on profit.

What are you waiting for?


Damyan Diamandiev
Damyan Diamandiev

Damyan is a fresh MSc International Management from the International University of Monaco. During his bachelor and master programs, Damyan has been working in the area of financial markets as a Market Analyst and Forex Writer. He is the author of thousands of educational and analytical articles for traders. When being in bachelor school, he represented his university in the National Forex Trading Competition for students in Bulgaria and got the first place among 500 other traders. He was awarded a cup and a certificate at an official ceremony in his university.

What are you waiting for?


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