Long & Short Position Tool
Plan your trades by visualizing entry, target, stop-loss, and risk-to-reward relationships.
What It Does
The Long & Short Position Tool helps traders visually plan a potential trade before entering it. It allows you to map out the entry price, profit target, stop-loss area, and the relationship between potential reward and risk.
How to Use It
Use the Long Position Tool when planning a bullish trade and the Short Position Tool when planning a bearish trade. Place the tool around the price area where you are considering an entry, then adjust the profit-target and stop-loss zones to match your trade plan.
Use the tool to study:
- • Entry price
- • Profit target
- • Stop-loss level
- • Distance to target
- • Distance to stop
- • Risk-to-reward relationship
- • Potential position planning
- • Whether the trade setup fits your risk rules
For a long setup, the target is normally above the entry and the stop is below the entry. For a short setup, the target is normally below the entry and the stop is above the entry.
Use the Long & Short Position Tool as a planning and risk-management aid. It does not predict whether a trade will win or lose.
Video Lesson
A video lesson demonstrating the Long & Short Position Tool in action will be added soon. Check back later for step-by-step examples of how to use this tool effectively in your chart analysis.