What's up everybody this is Johan Nordstrom from Trading Walk and in this video I'll show you a quick rundown onthe USDCAD trade the short trade.
so basically I took this trade on Fridaybecause of a few things I want to show you and this video is full of tips andstrategies that you can use so I hope you find it very valuable if you doplease leave a like on this video and and I really appreciate itlet's get to it okay so looking at this chart the first thing I did is I startby looking at big picture and looking at the daily chart here we can see thatwe're at a pretty strong resistance level from this previous high here thismight be a double top because this is kind of a V type when you see goodtrends that's continuing moving upwards you often see rounding of bottoms you don'tsee this sharp V type so that was one indication that this resistant levelhere might hold so after I looked at the daily chart I zoomed down to the 4-hourand in a 4-hour here I saw that well this was the resistance level from thedaily chart and I now in a 4-hour chart I also see that I have this resistancelevel here that's been tested 1 2 3 and now at the time when I sawthis it was testing it the fourth time so I sometimes say that the more timeslevel is tested less likely is going to hold but that's only true when you havethe pressure building up from underneath you see here you broke through but youimmediately reversed back that indicates that this resistance level willprobably hold to this this candle bearish right here resets the count other times I say that well at the thirdor fourth time the level is likely to break and as you can see here in thisexample well the first second and at third time we broke but it immediately broke down again so that's something for you tothink about when you when you look at support and resistance levels just let'sget back to the trade here so so the first thing was the strong resistancethat I that made up my mind that this was a good short trade the second thingI looked at was well can can you see what this type of formation is? Leave a comment down below and let me know if you can spot this! this is actually a bearish head andshoulder you have here the left shoulder the the head and the rightshoulder forming and the neckline right here and this these patterns and the thecandlestick formations that we see here all of them I talked about in I can seeprofits book so if you want more information on them and and some tips soyou can you can check that book out I prefer to sell when we're in the rightshoulder I don't want to wait for the break of the neckline because the rewardwill be less and the risk will be way higher than if I can catch the the tradeup in the right shoulder so the entry stop loss and take profit for this tradelooked like this so we have our entry here right here and this is entrypattern I talked about in my Candlestick Profits book I call it the D shaketrade if you're observant and if you read my free strategy guide you can alsosee that this is a type of to push that reversed it's giving multiple indicationthat this trade was going to work out but who knows we can't know forcertainty so we always put in our stop loss to protect yourself the way I tradeis I always want my take profit distance be at least one to one butpreferably 3 the distance of the stop-loss distance here so you can seethat this was a positive risk for trade and it worked out great but I showed youso many many strategies here and techniques how would you like if Ishowed you a way that you could simplify this so muchand the way you can do that is let's say you saw the resistant level so let'szoom down to a five-minute chart you will see what I'm talking about so whenwe zoom down to a five-minute chart and we applied the Trend Pulse Pro indicatoryou can see that Trend Pulse Pro generated seven accurate cell signals right herewould have been okay if you miss the first one the second one you could haveentered on the third or fourth one and you would be you know I'm an amazingtrade so let me show you if you'll be entered on the first signal you got asignal here you put in your limit order you would enter right here you put yourstop-loss about the previous high and you have your take profit down here andthere's a reason for placing your take profits down here the same reason Iplace my take profit down here is the reason that you should place your takeprofit down here and I will show you that in just aminute it would have been okay if you entered on the second trade as wellyou've entered a limit order entry stop-loss above the previous high righthere and take profits down here so let me show you exactly how you would find atake profit and the first thing here I want to talk about is always when youhave a previous lower if we undercut that low that's a good area to close outyour trade so for example this area right here if we undercut that if webounced here up again maybe gives us a new short signal below this area wouldbe a good area to close our trade and same thing for this low right herebelow close your trade and the same is true for for long trades let's say thatyou entered somewhere here a long trade then taking your profits above theprevious high would been a good exit same thing here exit you need to keep it simple and taking profits above previous highs ifyou're alone and taking profits below previous lows when you're shorting isalso a very good place to close out your trades but there's more you also had Fibonacci retracement which is something I always talk about the 50%level is so strong and you also have a two push type formation here so you candraw a Fibonacci extension and I talked about this previously you have the 127.
2% and the 161.
8% and as you can see here these when went twothese levels match as in the USDJPY trade I recorded last week wheneither the 127.
2% or the 161.
8% and a 50%come together that is a very very strong level we stoppedhere for some time we most likely will get a bounce here that's for sure and wesee we already had it so but we exited on the idea that the previous low asseen here below that is a good area and these two strong support levels here arealso good areas to exit this played out very nice a good profit and a very goodtrade I hope you got very good lessons from this trade and as I said if youwant to simplify this process Trend Pulse Pro generated seven accurate tradingsignals and I think you'll find it very very useful thank you so much forwatching if you enjoyed this video please leave a like and I will continuegiving you as much value as I can.
Thank you so much have a great day!.