LUV Backtesting, Objective Short Entry or Add-on

The LUV (Southwest Airlines) short trade currently offers another objective short entry here on the backtest of the recently broken uptrend line. The green lines are the actual resistance levels/targets unadjusted for the optimal buy-to-cover levels. Time permitting, I will study the chart to add those suggested buy-to-cover levels for each of these 4 price targets but for now, best to set your limit orders about 5-7 cents above the first level & 10 cents above the remaining targets.

LUV daily April 30th

LUV daily April 30th

Suggested stops would be calculated using an R/R of 3:1 or better based on your average entry price and your preferred target or targets, should you decide to book partial profits at one or more targets along the way. For an initial short trade entered here at 42.06, that would make the suggested stop for those only target T1 (38.40sih) about 43.26, or 1.20 above current levels.

2017-03-08T21:20:30+00:00 May 1, 2015 10:38am|Categories: Completed Trades - Short|Tags: |Comments Off on LUV Backtesting, Objective Short Entry or Add-on