Sell this Recurring Trade Setup (Short Position example)

Sell this Recurring Trade Setup (Short Position example)

Sell this Recurring Trade Setup (Short Position example) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

A Short Position Setup which is profitable is nice.

But if the Trade Setup is not only profitable but also frequent, then it’s a lot nicer!

In the Short Position example below, you can learn a Trade Setup that is frequent and very profitable.

The same Trade Setup is exploited every single day since several years by many traders on TradingView.

The setup must respect three simple rules that are explained below.

And it’s built using three powerful indicators that we’ve developed exactly for this:

Trade setup – 22 Apr 2020

You might want to always sell this one Setup 1

This Short Position setup is very simple and clear.

All the required conditions are met. In particular:

    1. There’s a significant divergence between the price, which is pretty much flat, and the RSI Exhaustion, which is falling
    2. The RSI Exhaustion is bullish exhausted, which means that the price has a limited room to move higher
    3. We have a new confirmed top

We then exploit the Levels and Zones indicator to set the Stop Loss and the Take Profit levels.

In particular, the Take Profit level is all the way down to the major support because, in between, there’s no major structure that could stop the price.

Essentially, if the price starts to move lower, it should be a free fall.

Trade update – 22 Apr 2020

You might want to always sell this one Setup 2

The price is moving down and the RSI Exhaustion is falling as well.

Trade update – 22 Apr 2020

You might want to always sell this one Setup 3

The price has formed two bottoms, and the RSI Exhaustion is moving slightly higher.

For the sake of safety, we moved the Stop Loss to Breakeven so that we’re now in a Risk-Free trade.

That said, as we anticipated, it’s pretty much a free fall so these bottoms should not create any major issue.

Trade update – 22 Apr 2020

You might want to always sell this one Setup 4

We got a third bottom, but the price keeps falling.

Trade update – 23 Apr 2020

You might want to always sell this one Setup 5

There’s some weird price movement that’s going on.

It is essentially moving sideways, even if there’s not major structure.

In any case, we’re at Breakeven so we are not concerned at all.

Even if we still expect the price to move lower, we must accept the fact that the price can always do whatever it wants, whenever it wants.

Trade update – 23 Apr 2020

You might want to always sell this one Setup 6

The price now moved significantly lower and it’s almost down at our Trading Target.

Some new contrary signals have emerged, but again, it’s a free fall.

Trade closed – 23 Apr 2020

You might want to always sell this one Setup 7

Take-Profit hit and another winning trade closed.

This recurring Short Position setup allowed us to win another trade for a 4.4x profit.

Even if, during the downtrend we got opposite setups which might have compromised the final result, we remained focused on the evidence.

And the evidence was that there was no major price structure between our Entry Price and the Take-Profit level.

In fact, even if the Price Action was slowed down during the downtrend, the price eventually went all the way down to our Target level at the very bottom of the TradingView chart

… exactly where the major support displayed by the Levels and Zones indicator was.

What about your setups? Are they profitable and recurring?

Feel free to share some of your trading experience with fellow traders by leaving a comment on the YouTube video above!