This chart demonstrates a highly profitable short trade executed with precision using the Risological Indicator. A stellar 16% profit was captured in this intraday trade, showcasing the power of momentum trading.
Trade Details
Stock: HARROW
Timeframe: 15-Minute
Entry Price: $52
Exit Price: $43
Profit: $9 per share (16% intraday return)
Key Technical Observations
Perfect Entry Point:
The entry at $52 aligns with the beginning of a sharp bearish breakout, as identified by the Risological Indicator. The indicator’s red resistance bands provided clear confirmation of a strong downward trend.
Momentum Confirmation:
A steep decline immediately followed the entry, with heavy bearish candles confirming the strength of sellers in the market. The gap and acceleration downwards signify a likely reaction to negative news or market-wide pressure.
Dynamic Resistance:
The price consistently respected the downward-sloping resistance bands, highlighting the dominance of sellers and a clear absence of bullish recovery attempts.
Exit at $43:
The exit near the $43 level demonstrates disciplined profit-taking, as the stock begins to consolidate and show signs of slowing bearish momentum.
Analysis of Results
This short trade captured the entirety of a massive 16% intraday move, leveraging the indicator’s precise trend-following signals. The sharp entry and timely exit reflect the strength of the Risological Indicator in identifying and capitalizing on market momentum.
Key Takeaways
Trend Confirmation is Critical: The trade capitalized on the established bearish trend, ensuring high probability of success.
Indicator Precision: The Risological Indicator’s dynamic resistance bands provided clear visual cues for both entry and exit, removing guesswork.
Risk Management: By exiting as momentum slowed, the trader avoided potential losses from a reversal or consolidation phase.
This trade underscores the importance of using robust tools like the Risological Indicator to stay ahead in volatile markets, transforming short-term opportunities into substantial profits.
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.