In this video, I'm going to analyze Australian dollar - Swiss franc on a four hour chart.
This is not a currency pair that I usually trade,
but here we have a very good opportunity.
We have a very strong support here.
If I zoom out, you can see that it also worked in the past
and then we have a bullish engulfing pattern right on the support.
I want to open a market order, a buy market order, so I want to select this price right here.
I want this line in light blue and I want to adjust the price.
So my order is here. Now, about the stop loss, I want it below the support.
So let's say something like 0.73 and I'm going to adjust the price and also color this
line in red, because this is a stop loss.
It's time to talk about take profit.
In this case, it is very hard to place a take profit, because we have lower highs on the market, highlighted
by this downtrend line and this is a formation that is called descending triangle.
But I don't really want to talk about it now,
I just want to follow what the candlesticks are saying to me right now and they are saying that we
might have a reversal on the support.
So what I'm going to do is to place the take profit higher than these highs here, probably around this
highs here,
so around the 0.7390 and I'm going to change it, I want a green color,
first of all, and I want to adjust the price. So we will have a position like this, with 35 pips that
we risk as a stop loss and 55 pips that we have as a potential take profit, so almost 1:2 as a
risk to reward ratio.
I'm going to open then this position on my OANDA web platform. I have had some problems recently
because they were obliged to change some rules.
I had my account in pounds and I had to change in euros, that I needed to lower the leverage from 100
to 50, but it is still OK for me, it's not a big deal.
So I want to open a buy position and set a market order with a stop loss at 0.73
and a take profit at 0.7390.
What about the units?
I want to risk one percent of my account
and, in this case, 1 percent is around €172.
So I want a stop loss of €172. To do so,
I need to select the correct amount of units.
Let me start from 65,000, for example.
In this case, I have 202 euros.
So it is too much.
Let me try with 55,000 units.
It is €183,
so still too much. Let me type of 50,000 and it is 167 euros,
so just a bit more, let's try with 52,000 and it is OK,
so I can click on submit.
Here we have our position on the market: 52,000 units, long position and I have stop loss and
take profit
already set on the market. So I can just follow what happens on the MetaTrader.
OK.
The position is over, but I have had some problems with the MetaTrader on OANDA,
you can see that the price is not moving at all
and I have no connection. To analyze this position,
I'm going to switch to another platform that is called Trading View.
You can see that, after the buy position that we opened around here, the price went up
and finally today it reached the take profit at 0.7390.
So a very nice trade with a very nice profit
and if we open the OANDA Web platform, you can see our trade here on AUD/CHF
for a total of 230 euros and 51 cents.