We can clearly identify a simple short setup, in fact:
- There is a divergence between the price, which is moving sideways, and the RSI Exhaustion, which is falling
- The RSI Exhaustion is bullish exhausted (colored in green)
- We have a confirmed top
Moreover, the price is just below a major resistance level identified by the Levels and Zones indicator. This should put significant downward pressure.
We set the stop loss, higher than the highest price level in this sideways movement, and we set the target all the way down to where the major support is.
We set the take profit so low because we know from past experience that the price likes to test the major levels identified by the Levels and Zones multiple times so, if we expect the price to move lower, that it is very likely that it will reach at least that level.