Online Forex Trading Example – Forex Sailing GBP/CHF

In my last blog post, I introduced rules for the online forex trading method called “Forex Sailing.” Naturally, the next step is to show you examples of successful forex sails (and where they failed).
Today, I’m going to share a case study of a recent successful online forex trading opportunity that successfully sailed 212 pips in 6 days! The best part is, this was only one of the forex trading opportunities that happened online during this same time period!

Rules for Sailing Forex Trading Online

The trade that I’ll be referring to below follows the Forex Sailing rules for online forex trading. This trade follows those specific rules. Please refer to the Forex Sailing rules, to understand this forex trading example.

GBP/CHF Daily Charts

Between April 5th & April 12th, 2010 the GBP/CHF formed a fibonacci wave up (forex candy-cane), which served as a reversal signal of the previous downtrend.
On April 15th, 2010 a look at daily online forex trading charts for the GBP/CHF revealed that a fibonacci wave had hit the following numbers:
High Daily Forex Candy-Cane: 1.6513
Low Daily Forex Candy-Cane: 1.5822
61.8% Retracement Daily Forex Candy-Cane: 1.6249 (Retracement Hit)
Notice how the daily forex candy-cane was formed (i.e. hit the 61.8% retracement) on April 12th:

GBP/CHF Enters the Forex Sailing Trading Zone

As soon as the wave in the daily charts (see picture above) was fully formed (i.e. hit the 61.8% retracement level), the GBP/CHF arrived at point III (which is the first Forex Sailing trading zone).

Zoom into 4-hour charts for GBP/CHF to go Forex Sailing

As soon as the GBP/CHF reached the III point on the daily charts (April 12th), we were able to zoom into the 4-hour online forex trading charts and identify the next forex trading opportunity.
At this point, we’re essentially waiting to see the SAME THING HAPPEN ON THE 4-HOUR CHARTS AS WE DID ON THE DAILY CHARTS!!!
Once we reach the III point on the daily charts, we’re looking for the III point on the 4-hour charts!

GBP/CHF hits the Forex Sailing Trading Zone on 4-hour charts

Although the daily charts reached the III point on April 12th 2010, the 4-hour charts didn’t show a fibonacci wave zone pattern until April 15th 2010. The picture below shows you the 4-hour chart when it hit the III point:
Here are the numbers that show the 4-hour fibonacci wave pattern is fully formed on the 4-hour chart for the GBP/CHF on April 15th, 2010:
High 4-hour Forex Candy-Cane: 1.6392
Low 4-hour Forex Candy-Cane: 1.6180
61.8% Retracement 4-hour Forex Candy-Cane: 1.6311 (Retracement Hit)

GBP/CHF Forex Sailing Trading Calculations

Now that we have both:

1. Fibonacci Trade Zone Entered on Daily forex trading Charts
2. Fibonacci Trade Zone Entered on 4-hour forex trading Charts

We can enter a trade using the price movement from I-II as a projection for the price movement from III-IV. To do this, we need to find the DIFFERENCE (subtract) between I & II for the 4-hour fibonacci wave & ADD it to the current price (III).
The difference between I & II is the HIGH (1.6392) of the 4-hour forex candy-cane minus the LOW (1.6180) of the 4-hour forex candy-cane. When we do this subtraction we get: 1.6392 - 1.6180 = .0212 = 212 pips!
Since the price of the fibonacci wave retraced to 1.6311, we add 212 pips to 1.6311 to get our profit target. When we do this we get: 1.6311 + .0212 = 1.6523!
Entry/Exit orders for GBP/CHF Forex Sail Trade
When this trade was entered, a stop was placed at 1.6180 (the low of the 4-hour forex candy-cane). Once this stop was placed, there were only two outcomes for this trade:

1. The trade would exit when the price hit 1.6523 for a profit of 212 pips.
2. The trade would exit when the stop hit 1.6180 for a loss of 131 pips.

With this trade there was a risk of 131 pips to potentially make 212 pips.

GBP/CHF Forex Sailing Outcome

After riding the 4-hour wave of the GBP/CHF for almost a week starting on April 15th, the profit target was hit for a gain of 212 pips on this trade! The stop was never hit, so this was a successful online forex trading experience! Here’s a picture of the online forex trading chart showing what this looked like:

Are All Forex Sails This Successful?

No, some times forex sailing results in a failed sail (aka a loss). The good news is that you only have to be right 38.2% of the time to be profitable with Forex Sailing. I’ll be sharing more examples of successful sails with you, but I’m also going to show you some online forex trading examples where these types of trades didn’t work!

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