IMPULSE – CORRECTION – IMPULSE
Daily/4H/1H/30mins timeframe (select only 1)
 Price trailed by 30SMA – ensure strength of first impulse wave (✓)
 Pullback between 30SMA and 150SMA (✓)
 Corrective structure formation with 2×2 touches (✓) Rising Wedge Pattern
 Stop order at the break of corrective structure with stop loss after swing L/H (✓)
 Stop order after price bounce off area of value with volatility stop
Additional confluences: Support or Resistance, ADX50, Linear Trend Lines, Fibonacci Retracement, ATR and Elliot Waves.
1% capital risked for potentially 3R
Open: 0.702 | Stop loss: 0.711 (-90) | Take Profit: 0.675 (+270)
Remarks: Nil for now
Stop loss placed under/above the anticipated swing L/H using 150SMA as a guide.
Take profit calculated using the length of the prior impulse wave rounded off to next nearest swing point/key level.
Extra: Risk halved.
At 50% of 2nd impulse or a swing L/H established, shift stop to break even. Earlier because: Downward move not convincing + price shouldn’t be passing through the 150SMA / LT-TL and the minor level of support which should turn into resistance. 0.7 might also be a key level to bypass and the triangle between LT-TL and breakeven price should be sufficient buffer.
At about 80% of 2nd impulse, shift stop to the 50% mark or below/above swing L/H.
If price breaks and closes under/above the 30SMA, tighten stop loss and prepare for manual exit.
 Initial stop loss
 Trailing stop, as mentioned under management
 Manual exit due to change of momentum and break of market structure
 Take profit
Remarks: A better idea would have been to exit with a small profit when price were chopping down, indicating weakness in sellers