--To entry+0.8%expected71.4%Hist. win rate
DIA
A rip is a fast rally. TradingPal only treats it as a Sell the Rip setup when an ETF rallies into tested weekly or monthly resistance, with the entry, safety exit, and target decided before the trade starts.
A rip is a fast rally. A fast rally is not automatically a short. Selling the rip means taking a bearish position only after that rally reaches a resistance area where sellers have stepped in before.
The phrase alone is not a strategy. A repeatable version names the eligible instruments, the resistance context, the entry trigger, the price that proves the idea wrong, and how the short will be covered. If short selling is new to you, think of “covering” as buying back the shares to close the trade.
TradingPal applies this setup to weekly and monthly resistance structure. It is closer to a longer-horizon, investment-style bearish position than a quick swing trade: a valid position may remain open for weeks or months while price travels toward the next major support target, unless the structural stop closes it first.
Resistance Smash is the product alias for the same resistance-side setup family. Both names resolve to this guide so the rules and evidence stay in one place. Read support and resistance for the price-role basics, then the systematic trendline strategy for the full trade-plan framework.
The historical results below apply only to this ETF-scoped setup. They do not describe every rally, every resistance line, or individual stocks outside the tested universe. How TradingPal backtests trendlines explains how that scope stays fixed.
Weekly supplies the primary sample and monthly offers the slower comparison. The holding period matters when you read average R and Sharpe ratio: these are historical results from the same entry, risk, and target rules, with weeks or months for a qualified move to mature—not evidence of instant or guaranteed profit. A current setup is simply an example from the latest scan, not a promise or a claim that it is the Morning Brief's top-ranked idea. The track-record metrics guide explains what those numbers do and do not mean.
Historical simulation of the complete named setup, not a generic trend-line result. Weekly is the primary view. Read the methodology →
1 structure found. See example
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See the full offeringThe tested short entry sits slightly below qualified resistance. It fills when the rally reaches that executable level; the exact offset is fixed by interval and line/Fib geometry. Shorting earlier leaves more room for the rally to continue, while shorting after a large decline erases the original reward-to-risk geometry.
If the tested entry never fills, the trade was missed—not won. A setup that moves away is not chased, and the unfilled trade should not be counted as a win in hindsight.
The planned stop sits above the resistance structure and is fixed before entry, so it determines the position size. The record uses close confirmation rather than exiting on every intrabar wick.
A monthly trade exits after one qualifying monthly close above the stop; a weekly trade requires two qualifying weekly closes. The exit occurs at that close, so an overshoot or gap can lose more than the planned amount.
The monthly version includes a resting 2R cover order from the bar after entry. A qualified support target can also govern the cover when the tested target-selection rule prefers it. On other views, a displayed 2R level may be a progress benchmark rather than a resting order; the setup card labels that difference.
The weekly record manages winners toward qualified support or its defined moving-average exit. Either timeframe may stay open for weeks or months while the resistance thesis remains valid. Replacing that patient rule with a quick daily cover would create a different strategy and a different historical record.
Read these limits with the table below.
The sample, instrument scope and dates belong to this exact setup book. Extreme drawdowns remain visible rather than being hidden.
| View | Scope | Trades | Win rate | Expected return | Profit factor | Max drawdown |
|---|---|---|---|---|---|---|
| Weekly | ETFs | 173 | 63.0% | +0.23R | 1.19 | 24.2% |
| Monthly | ETFs | 101 | 54.5% | +0.24R | 1.24 | 28.0% |
Backtest window: 2021-12-27 to 2026-06-29. Data snapshot: 7/23/2026. Historical results can differ from live fills and do not predict future performance.
It uses a short position, but the systematic version is narrower: ETF scope, qualified weekly or monthly resistance, an entry band below the line, a close-confirmed stop above it, and a declared cover rule.
That is the instrument scope used by the named reproducible setup. The published statistics should not be generalized beyond it.
Resistance Smash is the product alias for the same Sell the Rip setup family, so both labels share one canonical rules guide.
Price can break resistance and accelerate higher. A predefined structural stop and risk-based position size are essential.
The setup is based on weekly and monthly resistance, so a position can remain open for weeks or months while price moves toward the next major support target. The structural stop still governs risk for the full holding period.
Support is an area where declines have previously attracted buyers; resistance is where rallies have met sellers.
A trendline strategy becomes testable only when every decision is specified before the outcome: which line qualifies, when entry occurs, what invalidates the trade and how the position exits.
TradingPal does not buy every stock that falls.
Open the screener to compare current setups, their visible lines and their historical track records.
Explore the screener →Educational content, not investment advice. Backtests are historical simulations and do not predict the next trade.