Long or Short: SHORT
Entry Point: 82.90
Stop Loss: 83.30
Profit Target: 81.50
Reward-to-risk Ratio: 3.5:1
Risk percentage: 5%
Indicators: 10SMA(Red), 200SMA(Yellow)
Trade Rationale: I am basing this trade off of both the daily and the 4 hour time frames. The daily time frame seems to have changed into a downswing. The 4 hour timeframe is currently rising back towards 83.00 which I believe has turned into our new resistence. You can see my yellow resistance line and the 4 hour candles that have bounced off of it. I plan to make my entry after the next bounce off of the 83.00 resistance line. I will be watching the 1 hour chart to see if any candles are rejected off of the 83.00 resistance. My target is 81.50 because I believe the 200SMA may act as a support around this point.
Trade Adjustments: I will either cancel this trade or wait to enter it if we do not get another bounce off of the 83.00 resistance line. If a 4 hour candle closes above the resistance line, we could be looking at a retrace to 83.50 or 84.00.