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4 - How to place a trade ?
You will see 4 sets of charts in the software. However, to learn how to place a trade we will use the EUR/USD chart (you can choose the one that you prefer). First, maximize the chart (make it full screen) using the button marked as "1".
Then, put "0.01" or "0.1" as value in the box marked as "2".
After that, change the chart time from H4 to H1 (hourly chart) as shown in "3".
Once you have done all the previous steps, look at the candlesticks present in the chart area (marked as "4"). Empty looking candles are bull candles (may indicate a rise in the asset’s price) while white color ones are the bear candles (may indicate drops in the price level).
(You can change the color of these bars. To do that, right click on the chart. Then, go and click on "Properties". There you can change the 'bar up' & 'Bull’ candles to the same color while using a different color for 'bar down' & 'bear’ candles. Generally, green and red will be the ideal colors.)
Look at the chart once again as you are about to learn a simple trading strategy to place a trade. You will see some places where the price went to high points “marked in red” and places where the price went to low points “marked in green”.
If the price reaches to any of these high points and goes down after that, then this area is considered a resistance and it’s likely that if the price reaches these zones in the future, it will go down again after a while. So, if the price reaches one of these high points we should enter a trade by choosing "SELL" (marked as 5 in the previous image).
If the price reaches to any of low points and goes up after that, then this area is considered a support and it’s likely that if the price reaches these zones in the future, it will go up again after a while. So, if the price reaches one of these low points we should enter a trade by choosing "BUY" (marked as 6 in the previous image).
Note: If you are clicking “Buy” or “Sell” for the first time, you may get a window with a message. Just check the box at the bottom of that window and click ‘OK’.
(You can learn more about the trading strategy mentioned above in our Support and Resistance Trading article.)
You can close a trade manually and take profits from it using the 'x' sign, which is located at the right side of the trade (marked with a red circle), once it reaches your target.
Sometimes, your trade may end up as a loss. In that case, it’s better to close that trade with the minimum loss possible by using the same method.
Is there is a way to automate trades ? ( Optional)
Yes, you can setup values for a trade to auto-close once it reaches a certain price. When you enter the trade, double click on the trade (area highlighted in 'blue'). Then, you’ll get a pop-up window. In this window, add values as shown in the image below.
Stop Loss (marked in 'red') : You can set a value here to auto-close the trade if it goes against your predicted value.
Take Profit (marked in 'green') : You can set a value here to make the trade auto-close once it reaches your target value.
(Generally, it’s good to set Take Profit and Stop Loss values using a 2:1, 3:1 or 4:1 ratio. When setting values in EUR/USD you’ll have to take four decimals in consideration. In the previous screenshot we setup a stop loss at 1.1406 which is about 27 points/pips while take profit was set at 1.1328 which is about 51 points/pips.)
Now, play with this risk-free demo account and practice as much as possible.
