I’m entering a short position here, expecting the price to reject off the 2.8144 resistance level. My stop loss is placed slightly above at 2.8312, which provides a safety buffer in case of a minor fakeout. The take profit target is down at 2.5394, aiming for a clean reversal and continuation of the bearish trend. This gives me a favorable risk-reward ratio.
What Could Go Wrong:
Breakout Above Resistance:
If the price breaks above 2.8312 and reaches the stop loss, the trade setup will fail. A strong bullish breakout would invalidate the bearish scenario.
Weak Rejection or Consolidation:
If the price consolidates around the resistance without a clear rejection, it may indicate indecision, making the trade less likely to hit the target.
Stop-Hunt Risk:
A brief spike above the resistance to trigger stop losses (including mine), followed by a bearish move, is a potential risk. This could result in a loss despite the overall direction being correct.
Unexpected Market Catalyst:
Any sudden news or event could shift market sentiment, causing volatility and possibly invalidating the technical setup.
What Could Go Wrong:
Breakout Above Resistance:
If the price breaks above 2.8312 and reaches the stop loss, the trade setup will fail. A strong bullish breakout would invalidate the bearish scenario.
Weak Rejection or Consolidation:
If the price consolidates around the resistance without a clear rejection, it may indicate indecision, making the trade less likely to hit the target.
Stop-Hunt Risk:
A brief spike above the resistance to trigger stop losses (including mine), followed by a bearish move, is a potential risk. This could result in a loss despite the overall direction being correct.
Unexpected Market Catalyst:
Any sudden news or event could shift market sentiment, causing volatility and possibly invalidating the technical setup.
Trade active
Trade closed: stop reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.