Taking Short Positions Explained

This article is related to the article that we published HERE and also the last video published HERE, regarding the short trade setup that was formed on USD/CHF daily time frame, based on support level breakout on USD/CHF daily chart. Please make sure to read the article and watch the video. Also, please don’t forget to subscribe to our YouTube Channel. This enables you to receive our market analysis videos on time enough, so that you will be able to take and manage your positions before the markets price movements.

Before you read the rest of this article, please note that this is NOT a trading or investment advice and we are not trading and investment advisers. We are just sharing chart analysis techniques. You understand that you buy/sell/hold at your own risk. Also, please make sure to read our terms of use and privacy policy.

How to Take Short Positions When a Short Trade Setup Is Formed

You can do it in two ways.

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You can enter the market instantly and by clicking the “Sell by Market” button.

To do that, first you should click on “New Order” button at the top on MT4:

How to Take Short Positions When a Short Trade Setup Is Formed

Then, you should click the “Sell by Market” button. On the same window, you can set the lot size and also the stop loss and target orders. You won’t be able to change the lots size and make it bigger after taking a position. You can only close the whole position or a portion of it. However, you can modify the stop loss and target orders as long as the position is still open:

How to Take Short Positions When a Short Trade Setup Is Formed

Please read this article to the end. I will explain everything about taking short positions after a short trade setup, and also I will explain more about the USD/CHF short trade setup.

USD/CHF Short Trade Setup

We have been following the below forming short trade setup on USD/CHF monthly, weekly and daily time frames during the past a few days and since the weekend. Please make sure to watch this video Here (starting from 11:45), and also its previous video Here (starting from 11:14), and also the last video HERE. These videos are so important to help you understand how to start following a forming trade setup, and then taking it once it is fully formed.

Below is USD/CHF monthly time frame which has broken below the 0.91867 support level. Read this article for more detailed explanations: Support Level Breakout Trading Strategy Explained

As we were not sure whether the support level was valid or not, we didn’t take any positions when the July 2020 monthly candlestick closed below the level:

USDCHF Monthly

Then, we referred to the weekly time frame to see whether the weekly candlestick will confirm the validity of the broken support level or not. A candlestick has closed below the 0.91867 support level, but we needed more confirmation to assure that the broken support level was valid:

And below is the daily chart. Finally, the 2020.08.03 and 2020.08.04 daily candlesticks formed a short trade setup below the broken support level:

How to go short after the above short trade setup?

I explained how to enter the market instantly. That’s one of the ways to enter the market after a short trade setup. But there is a second way too:

Click Here to watch the detailed explanations about placing a sell pending order or sell stop, where the short trade setup is formed.

To do that, you can right click a few pip below the close price of 2020.08.04 daily candlestick, hover your mouse pointer on Trading and then click “Sell Stop”:

How to Take Short Positions When a Short Trade Setup Is Formed

Watch this video to learn how to set the top loss and target orders too. Also you will learn how to manage your orders, and what will happen if you make a mistake.

Please like the video. Thank you 🙂

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By The LuckScout Team

I don't believe in luck. I believe in sweat. The more you sweat, the luckier you get.

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