What this market video covers
A pattern projection is not the return on your trade. Consider a labeled hypothetical head and shoulders example with a horizontal neckline at one hundred and a head at one hundred ten. The height is ten dollars. Subtract ten from the neckline for a rough projected price of ninety. That is a geometry reference, not a promised outcome. Now suppose a short sale actually enters at ninety six, after the break. If it exits at ninety, the gross price difference is six dollars per share, not ten. Divide six by the actual entry price, ninety six: six point two five percent. That is before fees, borrowing costs and execution differences. It is not a return on margin capital, and losses on a short can exceed the initial proceeds. Keep the pattern measurement, actual entry and capital denominator separate. Clearly labeled hypothetical worked example; figures are illustrative, not current company results. Educational content, not personalized investment advice. Sources: #ChartPatterns #MeasuredMove #RiskManagement #TradingEducation #Shorts Short-sale risk source:
Use this analysis as general education. Confirm current prices and conditions independently, define invalidation before entry, and size every position for the loss you can actually tolerate.