WEBVTT

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Here we have United States dollar against the Swiss franc on a daily chart.

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You can see that there is a downtrend that is going on since the end of last year.

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So I consider it as a main trend.

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Switching to the 30 minutes chart it is quite clear that during last seven-eight days, the currency pair

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is trading within a range, that I have identified with this channel.

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Remember that the main trend is down,

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so I'm looking for short positions

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and of course I'd like to open my short position near the top of the channel.

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The market has formed a bearish engulfing pattern.

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If I zoom in is more clear.

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So I took the chance to open a short position after this bearish signal. I needed to study the entry

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level, the stop loss and the take profit.

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I have already my position on the market so I only need to do like this and I have all my lines here.

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The entry level is quite easy.

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I want to get my position right after the bearish engulfing pattern,

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so I open my position right here at the 0.9675.

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I want to place then a stop loss that goes above my channel,

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So above 0.9690. 25 pips from here should be fine,

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so 0.97 will be my stop loss. Let's follow the tips I have given to you regarding

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the take profit.

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So I decide to place my take profit at 0.9625.

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So my take profit is twice my stop loss for now.

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Then I need to analyze this take profit. Should I decrease it?

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I can't see any reason to do it,

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I would only have a worse risk to reward ratio.

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Should I increase my take profit?

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Maybe I can increase my take profit by 10-15 pips but not more than that,

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otherwise it will go outside my channel.

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Anyway I decided to keep my position like this.

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It is going down pretty fast,

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I didn't even have time to record this video,

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that the couple is already down by 30 pips more or less.

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Anyway we will see the results of this trade at the end.

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Ok, so the trade went very well.

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We started here with a short position on this bearish engulfing pattern at the top of the channel and

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we ended here, getting our take profit about one day and a half later.

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Well, what to say about this position?

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There has been a phase in which the pair has traded in this range of about 20-25 pips but there hasn't

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been any signal that my trade was wrong.

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Let's check the trade on OANDA Web platform.

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Here we have United States dollars against the Swiss franc and I got about 2 percent of profit, risking

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only 1 percent of my account.