Part 1) introduction

VolatilityMarkets suggests trend-inspired trades that capitalize on market trends.

In the short term Coca Cola has been decelerating lower. In the long term Coca Cola has been accelerating lower. With the long term trend being the stronger of the two, we propose a short trade idea with a one week time horizon.

Part 2) trade idea details

Chart

Sell $ 70,758 USD of Coca Cola, take profit at $ 53.7395 level with 50.0% odds for a $ 1,000 USD gain, stop out at $ 55.2804 with 50.01% odds for a $ 1,000 USD loss.

Chart

The BoxPlot below outlines the take profit and stop loss level placement of the trade idea, the inter-quartile range of expected traded outcomes, as well as the best and worst case scenario on the whiskers.

Chart

Chart

Scenario Analysis:

There is a 50.0% probability that the take profit level will independently trade over the 1w timeframe.

Chart

There is a 50.01% probability that the stop loss level will independently trade over the 1w timeframe.

Chart

There is a 25.0% probability that neither the stop loss level nor take profit level will independently trade over the 1w timeframe.

Chart

There is a 25.0% probability that the strategy succeeds by having the take profit level touch and the stop loss level not touch over the 1w timeframe.

Chart

Part 3) KO trend analysis

Chart

KO last price was $ 54.51. The long term trend accelerating lower is stronger than the short term trend decelerating lower. This trade goes short when the price was moving lower and accelerating over the past 20 days.

Price Summary

Today's last mid price was $ 54.51.

Chart

Price Changes

Over the past 20 Days, the price has decreased by -12.69% percent.

Chart

Long Term Trend Analysis:

This trade goes short when the price was moving lower and decelerating over the past 20 days.

Chart

Over the past 20 days, the price has on average been accelerating $ 0.0132 per day.

Chart

Short Term Trend Analysis:

This trade goes short when the last change was lower and accelerating.

Chart

Over the last session, the price has decelerated $ -0.53.

Chart

Part 4) KO value analysis

Chart

Over the past 20 days, the KO price increased 4 days and decreased 16 days. For every up day, there were 4.0 down days. The average return on days where the price increased is 0.7662% The average return on days where the price decreased is -1.0312% Over the past 20 Days, the price has decreased by -12.69% percent. Over the past 20 days, the average return per day has been -0.6345% percent.

Market Skew

Over the past 20 days, the KO price increased 4 days and decreased 16 Days.

For every up day, there were 4.0 down days.

Chart

The average return on days where the price increased is 0.7662%.

The average return on days where the price decreased is -1.0312%.

Chart

Part 5) KO worst/best case scenario analysis

Chart

Within 1 week, our worst case scenario where we are 95% certain that this level won't trade for KO, is $ 52.2319 , and the best case scenario overnight is $ 56.7881 . levels outside of this range are unlikely, but still possible, to trade. We are 50% confident that $ 55.2804 could trade and that $ 53.7395 could trade. These levels are within statistical probability.

Expected Range

Chart

Within 1 week, our worst case scenario where we are 95% certain that this level won't trade for KO, is $ 52.2319 , and the best case scenario overnight is $ 56.7881 . levels outside of this range are unlikely, but still possible, to trade.

We are 50% confident that $ 55.2804 could trade and that $ 53.7395 could trade. These levels are within statistical probability.

Probability Vs Payout Chart:

This graph contrasts the percentage payout of holding a position vs the probability that the payout occurs. The red and green columns represent the probability of stopping out and taking profit and their associated payouts.

Chart

Key Takeaways:

  • Price today $ 54.51.

  • Over the past 20 days, the KO price increased 4 days and decreased 16 Days.

  • For every up day, there were 4.0 down days.

  • The average return on days where the price increased is 0.7662%.

  • The average return on days where the price decreased is -1.0312%.

  • Over the past 20 Days, the price has decreased by -12.69% percent.

  • Over the past 20 days, the average return per day has been -0.6345% percent.

  • Over the past 20 days, The price has on average been accelerating: $ 0.0132 per day lower.

  • Over the last session, the price decreased by $ -0.48.

  • Over the last session, the price decreased by -0.8806 %.

  • Over the last session, the price decelerated by $ -0.53.

Share: Feed news

Volatility Markets provides trend following trade ideas for momentum traders. The Volatility Markets Newswire measures the direction and acceleration of a security and then structures a trade idea to capitalize on the trend. While trends have been shown to exist in markets over the past 100 years, they are no guarantee of future asset prices. You should take these ideas lightly and at your own risk.

Recommended content


Recommended content

Editors’ Picks

Gold gives away some gains, slips back to $2,980

Gold gives away some gains, slips back to $2,980

Gold retraced from its earlier all-time highs above the key $3,000 mark on Friday, finding a footing around $2,980 per troy ounce. Profit-taking, rising US yields, and a shift to a risk-on environment seem to be putting the brakes on further gains for the metal.

Gold News
EUR/USD remains firm and near the 1.0900 barrier

EUR/USD remains firm and near the 1.0900 barrier

EUR/USD is finding its footing and trading comfortably in positive territory as the week wraps up, shaking off two consecutive daily pullbacks and setting its sights back on the pivotal 1.0900 mark—and beyond.

EUR/USD News
GBP/USD remains depressed, treads water in the low-1.2900s

GBP/USD remains depressed, treads water in the low-1.2900s

GBP/USD is holding steady in consolidation territory after Friday’s opening bell on Wall Street, hovering in the low-1.2900 range. This resilience comes despite disappointing UK data and persistent selling pressure on the USD.

GBP/USD News
Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound

Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound

Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.

Read more
Week ahead – Central banks in focus amid trade war turmoil

Week ahead – Central banks in focus amid trade war turmoil

Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025