Today we have another great Short Selling example!
It’s on a Forex pair but the same principles apply for shorting a Stock or any other asset.
Just like we discussed in another Short Selling example, a short position can be very profitable!
There’s not really, except for the fact that you must be careful with short selling.
Luckily, when you follow a few simple rules you can trade a short position just like any other Trading opportunity.
With the Bottoms Tops Signal and the RSI Exhaustion, we are able to identify what appears to be a very interesting short trading opportunity on our TradingView chart.
The only concerning thing is that the Levels and Zones indicator says that we are sitting just above a support.
This might pose a problem in the initial phases of our short selling strategy execution.
However, if the price moves lower (as we are expecting) then, such support will turn into a resistance.
What does this mean?
It means that it will play a huge role in pushing the price significantly down.
So, as long as we trade our short selling strategy safely, then we’re good to go.
Below here, you can see our whole live short selling trade commented step-by-step.