Short Analysis on USDSEK (1H) Intraday
Today we analyze a short trading opportunity on the USDSEK exchange rate, with an hourly time frame (1H). Market conditions and indicators suggest a possible decline in the price towards the support level, presenting a good risk/reward ratio. Let's look in detail at the key parameters of this trade.
Entry Strategy
Short Position: Our entry is planned around the 10.7140 level, with the price recently showing signs of weakness. The resistance zone has been tested several times, which suggests a possible reversal.
Stop Loss: Our stop loss level is set at 10.7430, which is approximately 43 pips above the entry price. This level was chosen to protect the position from adverse movements, as it is above the immediate resistance level. The distance from the stop is calculated considering the volatility and recent behavior of the market.
Take Profit (Target): The target is set at 10.5941, a significant support level that has already shown resistance in the past. This implies a possible decline of around 120 pips, with a risk/reward ratio of around 3.36, which makes this trade particularly advantageous in terms of reward-to-risk.
Trade Management and Indicators
Alligator: The Alligator indicator, used to determine the medium-long term trend, confirms a bearish market condition. The Alligator lines indicate that the market is in a consolidation phase, with a potential recovery to the downside that supports our short position.
WaveTrend SwipeUP: The WaveTrend, shows that the bearish pressure is increasing, suggesting that the price could continue to decline in the short term.
Conclusions
In summary, this short trade on USDSEK is supported by a solid technical setup and a good risk/reward ratio. With the right stop loss and target, the position has great profit potential if the market moves in our favor. We monitor the price and indicators closely, ready to adapt to any changes in market conditions.
Happy trading and always remember to manage risk!
