Daily/4H/1H/30mins timeframe

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

[2] Pullback between 30SMA and 150SMA Did not consider this to be relevant for the set-up

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

[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, ADX40, Linear Trend Lines, Fibonacci Retracement, ATR and Elliot Waves + False Breakout

1% capital risked for potentially 2R

Open: 1.0735 | Stop loss: 1.0775 (-40 points) | Take Profit: 1.0655 (+80 points)

Remarks: Both strategies HTF Swing or Impulse-Correction-Impulse could be used to trade this set-up.


Keying in the trade, use volatility stop placed under/above an established swing L/H or moving average cross or estimating volatility using ATR.

Real 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.

Once entry triggered and break out, shift automated volatility stop to real stop position.

download (5).pngEDIT Miscalculated the TP using impulse wave. Take Profit shifted to 1.064 (+95 points)

At 50% of 2nd impulse or a swing L/H established, shift stop to break even.

download.pngAt 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.


download (2)

[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

Missed TP by a tiny bit. TP keyed in at 1.064 and the lowest price at the bottom of the candlestick on the wick was 1.06425. Very close, took the risk by shifting the TP further, paid the price. Would have gotten off a nice 2R trade otherwise.

But so be it then.

Manually exited as the bears seem to have gotten weak with (1) that downward channel in comparison to the large bearish candles and (2) price has approached the upward trend line on the daily timeframe.

Gotta be thankful with 1.65R in this case.


download (2).pngEnded up hitting the TP for 2.3R anyway…