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.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD soars past 1.1200 as China's tariffs confirmed at 145%

EUR/USD soars past 1.1200 as China's tariffs confirmed at 145%

EUR/USD soared beyond 1.1200 amid headlines confirming the latest round of tariffs, levies on Chinese imports reached 145%. Wall Street collapses amid renewed concerns that Trump's policies will hit the American economy. Soft US inflation data released earlier in the day adds to the broad US Dollar's weakness. 

 

EUR/USD News
GBP/USD closes in to 1.3000 on renewed USD selling

GBP/USD closes in to 1.3000 on renewed USD selling

GBP/USD resumed its advance and nears the 1.3000 mark, as speculative interest resumed US Dollar selling. Softer than anticipated US CPI figures and persistent tensions between Washington and Beijing over trade weigh on the American currency and Wall Street. 

GBP/USD News
Gold resumes record rally, reaches $3,175

Gold resumes record rally, reaches $3,175

Gold extended its record rally on fresh tariff-related headlines, trading as high as $3,175 a troy ounce in the American session. The White House confirmed 35% levies on Mexico and Canada, 145% on Chinese imports, resulting in a fresh round of USD selling and pushing XAU/USD further up.

 

Gold News
Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge

Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge

Cardano stabilizes around $0.62 on Thursday after a sharp recovery the previous day, triggered by US Donald Trump’s decision to pause tariffs for 90 days except for China and other countries that had retaliated against the reciprocal tariffs announced on April 2.

Read more
Trump’s tariff pause sparks rally – What comes next?

Trump’s tariff pause sparks rally – What comes next?

Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners. 

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