shortPosition

The Short Position tool is a projection used when you expect the market to move downward. It displays your entry, stop-loss, and take-profit levels directly on the chart. Traders use it to plan risk–reward ratios and backtest trade management for bearish setups.

Syntax

shortPosition(time, price, styles?)

Parameters

time (number) · The bar time where the position starts. price (number) · The entry price for the short trade. styles (PositionToolOverrides) · Style and risk settings:

• stopLevel (number) · Distance from entry up to stop-loss (in price units).

• targetLevel (number) · Distance from entry down to take-profit (in price units).

• riskReward (boolean) · Show the risk/reward ratio on the chart.

• fillBackground (boolean) · Fill the short position area.

• transparency (number) · Background transparency (0–100).

• line (LinesLevels without coeff) · Border style (linestyle, linewidth, color).

• background (RGBAColor | BaseColors) · Fill color for the projection zone.

Return Value

(string) · The drawing ID of the created Short Position.

Example

Every 50 candles, place a short position starting from a recent swing high with a defined stop and target.

//@version=1
init = () => {
  indicator({ onMainPanel: true, format: 'inherit' });
};

onTick = () => {
  if (index % 50 === 0) { // draw every 50 bars
    // 1) Define entry point
    const entryT = time(20);
    const entryP = high(20);

    // 2) Style configuration
    const style = {
      stopLevel: 50,        // stop 50 units above entry
      targetLevel: 100,     // target 100 units below entry
      riskReward: true,
      fillBackground: true,
      transparency: 70,
      line: { linestyle: 0, linewidth: 1, color: color.red },
      background: color.rgba(255, 0, 0, 0.15)
    };

    // 3) Draw short position
    shortPosition(entryT, entryP, style);
  }
};

Tips

• Use recent swing highs as logical stops for short trades.

• Keep a favorable risk/reward ratio (e.g., 2:1 or better).

• Excellent for visualizing backtesting strategies where risk control is important.

Warning

• Don’t make the stop level too tight; minor pullbacks could exit you too early.

Good Practice

• Stick to a clear color scheme (red for shorts, green for longs).

• Test different stopLevel and targetLevel values against volatility to ensure realistic setups.