Long position means you buy an asset expecting its price to increase so you can sell it later at a higher price for a profit.

Entry Point (BUY) 🟢

• This is where you enter the trade by buying the asset at a certain price.

• Usually placed after confirmation of an uptrend (e.g., price breaking resistance or forming a bullish pattern).

Take Profit (TP) 🎯

• The price level where you exit the trade to secure profits.

• Typically set at a key resistance level or based on risk-to-reward ratio (e.g., 2x risk).

Stop Loss (SL) 🔴

• A protective order placed below the entry price to limit losses if the trade moves against you.

• Usually placed at a support level or below recent lows.

Entry Price Level

Stop Loss Level

Take Profit Level

Long Position:

Stop Loss Level

Entry Price Level

Take Profit Level

Short Position:

A short position means you sell an asset first, expecting its price to decrease, so you can buy it back at a lower price and make a profit.

Entry Point (SELL) 🔴

• This is where you enter the trade by selling the asset at a certain price.

• Usually placed when the market shows bearish signs (e.g., breaking support, forming lower highs, or rejection at resistance).

Take Profit (TP) 🎯

• The price level where you exit the trade to secure profits.

• Typically set at the next key support level or based on a risk-to-reward ratio (e.g., 2x risk).

Stop Loss (SL) 🟢

• A protective order placed above the entry price to limit losses if the trade moves against you.

• Usually placed at a resistance level or above recent highs.