The trade discussed is a short position initiated following a significant price drop. The entry is based on a downtrend characterized by consecutive bearish candles, where a minor bullish retracement occurs before a bearish rejection, allowing for a “pullback to sell” strategy. The stop loss is positioned above the recent swing high, ensuring protection against potential pullback failures while maintaining a favorable risk-reward ratio. The take profit is set below the entry point, targeting recent spike lows and support levels, aiming for a larger reward compared to the risk taken, aligning with the ongoing downtrend.
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