Bearish Peak-Short Strategy

Strategy Name: Short Peak Entry

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Strategy Description: Short Peak Entry is a tactical mean-reversion short strategy engineered to exploit overextended price action in high-momentum conditions. This setup targets sharp intraday pullbacks triggered by volatility spikes and momentum exhaustion, making it ideal for disciplined traders seeking consistent, short-duration trades against extreme market sentiment.

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Core Setup:

Reversal Signal: Initiates a short position when the price crosses below the upper Bollinger Band (20-period, 2 standard deviations) and the Relative Strength Index (RSI) is above 70, signaling a potential overbought condition and loss of upward momentum.

Execution Time Frame: 15-minute chart for timely entry and rapid trade resolution.

Profit Target & Risk Control:

• Take Profit: +0.75%

• Stop Loss: -1.00%

A 1:1 reward-to-risk profile is optimized for high win-rate precision setups where reversion probabilities are elevated.

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Ideal For:

• Traders focused on mean-reversion plays in intraday environments

• Assets prone to volatile overbought reactions (e.g., momentum stocks, crypto pairs)

• Systematic scalpers seeking tight, repeatable entries during exhaustion phases

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Short Peak Entry offers a systematic edge for traders capitalizing on overstretched moves, leveraging volatility and momentum metrics to time precise reversals with disciplined risk management.

https://app.trylevel2.com/invite/canvas/e5586f06-a886-4fae-ae66-4bae111523e4/7322

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• Enter Short position

  • Current price crosses below upper bollinger band

  • RS >70

• Exit

  • Take profit at 50 bps and Stop loss at 50 bps

• Enter Short position

  • Current price crosses below upper bollinger band

  • RS >70

• Exit

  • RSI < 50 Or Current Price crosses below middle Bollinger Band

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Next steps:

1. Make this strategy your own – click here to customize to suit your preferences.
2. Try this strategy on a different asset or timeframe -

   1. Navigate to the “Create” menu on the homepage, choose your preferred asset and timeframe, then choose “Copy” to duplicate the strategy.

   2. From there, backtest and deploy whenever you're ready.

   3. Reach out to the Level2 team with any questions or if you need tech support

Risk Warning – Template Strategies

The template strategies provided on Level2 are for educational and illustrative purposes only and do not constitute investment advice or a recommendation to trade. These strategies are based on historical examples and are not tailored to your individual financial circumstances, objectives, or risk tolerance.

Before deploying any strategy, you must run a back-test using your chosen security. Strategy performance can vary significantly depending on the asset class, time frame, volatility, and broader market conditions. It is essential to adjust parameters such as entry/exit levels, indicators, and time frames to suit the specific security and current market dynamics.

Level2 does not guarantee the accuracy, completeness, or future performance of any strategy. All trading involves risk, including the potential loss of capital. Past performance is not indicative of future results. Users should conduct their own due diligence and seek independent financial advice if needed.

By using template strategies on Level2, you acknowledge that you are solely responsible for all trading decisions and outcomes.