Preparing a Short Sale Deal (Short) - $VVV
The trade is based on taking away momentum and the continuation of downward pressure after the rejection of the Moving Averages Cluster (MA Cluster). Below is the numerical evaluation of the ratios and the return versus risk (Risk/Reward Ratio).
Trading Levels Table
Level Price ($) Percentage of Average Entry (23.29) Entry Range 23.18 - 23.40
Stop Loss 24.10
Risk: 3.49%+
First Target (TP1) 22.20
Profit: 4.65%
Second Target (TP2) 21.34
Profit: 8.37%
Return vs Risk Analysis (R:R Metrics)
First Target (TP1): risk-to-reward ratio 1 : 1.33 (profit ~4.65% vs risk ~3.49%).
Second Target (TP2): risk-to-reward ratio 1 : 2.40 (profit ~8.37% vs risk ~3.49%).
Trade Execution and Management Tactics
Break Confirmation: The bearish direction is confirmed by a candle close (15 minutes / 1 hour) below the 23.18 level to ensure sellers remain in control and to prevent a fake reversal.
Locking in Profits: When the first target (22.207) is reached, it is preferred to take 50% of the position size and move the stop-loss order immediately to the entry price (Break-Even).
Position Sizing Management: Based on a stop loss of 3.49%, adjust leverage and contract size so that the potential loss does not exceed 1% to 2% of the total account capital.
The trade is based on taking away momentum and the continuation of downward pressure after the rejection of the Moving Averages Cluster (MA Cluster). Below is the numerical evaluation of the ratios and the return versus risk (Risk/Reward Ratio).
Trading Levels Table
Level Price ($) Percentage of Average Entry (23.29) Entry Range 23.18 - 23.40
Stop Loss 24.10
Risk: 3.49%+
First Target (TP1) 22.20
Profit: 4.65%
Second Target (TP2) 21.34
Profit: 8.37%
Return vs Risk Analysis (R:R Metrics)
First Target (TP1): risk-to-reward ratio 1 : 1.33 (profit ~4.65% vs risk ~3.49%).
Second Target (TP2): risk-to-reward ratio 1 : 2.40 (profit ~8.37% vs risk ~3.49%).
Trade Execution and Management Tactics
Break Confirmation: The bearish direction is confirmed by a candle close (15 minutes / 1 hour) below the 23.18 level to ensure sellers remain in control and to prevent a fake reversal.
Locking in Profits: When the first target (22.207) is reached, it is preferred to take 50% of the position size and move the stop-loss order immediately to the entry price (Break-Even).
Position Sizing Management: Based on a stop loss of 3.49%, adjust leverage and contract size so that the potential loss does not exceed 1% to 2% of the total account capital.