T1 – NZD/USD

IMPULSE – CORRECTION – IMPULSE

t1.png

ENTRY

Daily/4H/1H/30mins timeframe (select only 1)

[1] Price trailed by 30SMA – ensure strength of first impulse wave (✓)

[2] Pullback between 30SMA and 150SMA (✓)

[3] Corrective structure formation with 2×2 touches (✓) Rising Wedge Pattern

[4] Stop order at the break of corrective structure with stop loss after swing L/H (✓)

[4] 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

MANAGEMENT

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.

download.pngExtra: Risk halved. 

download (2).pngAt 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.

EXIT

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[1] Initial stop loss

[2] Trailing stop, as mentioned under management

[3] Manual exit due to change of momentum and break of market structure

[4] Take profit

Remarks: A better idea would have been to exit with a small profit when price were chopping down, indicating weakness in sellers

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