Everyone, I’m going to open a large short position on
$RUM .
Take profit: 5.5202
Stop loss: 6.1797
👇
You might be wondering the obvious question: why am I shorting at this level?
First, the price level.
The 20-day range is 4.5 to 6.149. The current price is 5.895, putting it at the 84.6th percentile.
Right overhead is the rim at 6.149, with only 4.3% room to go up.
Standing on the rim and looking down, it’s a long way to fall.
Now look at the past seven days: +17.90%.
The rise hasn’t been slow, but each candle has had to work harder than the one before it.
At first glance, I thought I was seeing things. I pulled up the 15-minute chart and checked twice before I believed it.
Why put the take-profit and stop-loss here?
The average daily volatility is 6.36%. I’ve set the take-profit at -6.36% and the stop-loss at +4.83%—both within that range.
That’s a hard-and-fast rule in my system. I’d rather make a little less than let one trade wipe out the profits from several earlier ones.
The risk-reward ratio is 1.32—not great.
By my reckoning, the positions from this rally are all piled up below, with little support above. All the disagreement is concentrated near the upper edge, so I’m willing to bet on a pullback here.
As a quick comparison,
$BNB is up +2.199%, while
$TRX is down -0.488%.
Neither has kept pace with this surge. There’s only so much money in a market—when someone fills their plate, someone else is left with an empty bowl.
Honestly, with a short position this close to the upper edge, what worries me most is a final acceleration upward.
That’s why my stop-loss is set at 6.1797. If it breaks through, I’m out—no looking back.
What do you think—can a short position at this level hold?
#RUM #BNB #Cryptocurrency
The above is a record of my personal trading system and observations of market data. It does not constitute investment advice.