# A systematic reversal trade on Shopify stock

> A trader shares a rules-based long setup on SHOP using RSI and volatility signals with a 4:1 reward-to-risk ratio.
- Title: A systematic reversal trade on Shopify stock · TradingView
- Summary: A trader shares a rules-based long setup on SHOP using RSI and volatility signals with a 4:1 reward-to-risk ratio. This systematic reversal strategy entered…
- Keywords: shopify, shop, nasdaq, reversal strategy, rsi, natr oscillator, technical analysis, trading setup, bracket order, risk management, flukefluke, business
- Source: TradingView — https://tradingview.com/chart/SHOP/WsfJLSk1-SHOP-Reversal-Strategy-Long-Setup
- Published: 2026-09-16T00:38:55+00:00
- Read time: 1 min
- Topics: shopify, shop, nasdaq, reversal strategy, rsi, natr oscillator, technical analysis, trading setup, bracket order, risk management, flukefluke, business
## Rules over discretion
This trader doesn't rely on subjective chart reading. Instead, he built predefined setups into a strategy to make decisions systematic and repeatable.

> I am not a discretionary technical analyst, so I rely on predefined setups rather than subjective chart analysis.
## Two signals triggered the entry
RSI crossed above 30, exiting oversold territory. The NATR volatility oscillator hit 92.04, exceeding the required 80 threshold.
## Perfect score met the threshold
Each signal contributed 0.5 points. The combined score of 1.0 matched the exact threshold needed to trigger a long bracket order on SHOP.

> The long setup score met the required threshold. The strategy therefore placed a long bracket order.
## 4:1 reward to risk ratio
Entry at $92.95 with a stop at $66.56 (about 4x daily ATR below) and target at $198.55 (about 16x daily ATR above). The stop distance is $26.39.
## Trade filled and now active
The setup candle closed on March 11, 2025. Two days later, price reached the trigger level and the long entry filled at $92.95.

> Assume the worst has already happened: the stop loss has been reached.
## Key takeaway

This systematic reversal strategy entered SHOP long at $92.95 with a stop at $66.56 and target at $198.55 after RSI exited oversold and volatility exceeded 80.