Everyone, I'm preparing to open a large short position at
$ONDS .
Take profit: 5.085
Stop loss: 5.4933
👇
You may be wondering the obvious question: why am I shorting at this level?
The latest 15-minute candle closed at 5.33. This price is only at the 35.3rd percentile of the past 20 trading days, with a considerable distance still to go.
The range is 4.369 at the bottom and 7.088 at the top. Price is sitting in the lower-middle area, and positions are widely dispersed.
The closing price is almost right on top of my entry price. I don't chase a move that's already happened.
The take-profit at 5.085 is the lower of the 12-hour reverse extreme and the average daily volatility, 4.60% below the current price.
The stop loss at 5.4933 is the 6-hour extreme with an additional 0.5% buffer, 3.06% above the current price.
Average daily volatility, calculated using calendar-day ATR14, is 9.24%. Both levels are within that range—that's my usual rule for setting them.
It has fallen 15.81% over the past seven trading days, and the rebound has consistently been weak.
Risk-reward ratio: 1.50.
The broader market at
$BTC is up just 0.654% over the past 24 hours, offering it little support.
There aren't many buyers willing to step in, and liquidity can't support a second leg. At a level like this, I'll only take one leg.
If it hits the stop-loss level first, I'll accept it and won't add a second leg.
Honestly, the hardest spots to trade are those caught between up and down. I can only make my position clear by setting a stop loss.
What do you think?
$BULLA #ONDS #BULLA #Crypto
The above is a record of my personal trading system and observations of market data. It does not constitute investment advice.