📝 Short Action Plan (Selling)
This plan uses Support and Resistance lines to establish exactly where you open, where you close with profit, and where you limit your loss.
1. Trade Entry (Opening the Short Position)
Action: Place a Sell/Short order.
Logic:
* Identify a Resistance Line (ceiling) that has rejected the price multiple times in the past.
* Wait for the price to reach exactly that area or show clear signs of rejection (e.g., large red candles, failure to break).
* The Short entry is made to bet that sellers (the bear 🐻) will take control and push the price back down.
2. Stop Loss (Limiting Loss)
Action: Set a mandatory Stop Loss (SL) order.
Logic:
* SL must be placed IMMEDIATELY ABOVE the Resistance Line you have identified.
* If the price breaks above Resistance, it means your initial plan (of rejection) is invalidated. The trade is automatically closed with a small, controlled loss.
* Purpose: Protecting capital.
3. Take Profit (Securing Profit)
Action: Set a Take Profit (TP) order.
Logic:
* TP must be placed at the level of the nearest Support Line (floor) below your entry price.
* That Support line is where you expect buying pressure (bullish) to intervene and stop the decline.
* Closing the trade at Support secures profit before the price has a chance to revert in the opposite direction.
