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 Pullback within S&R + Downward channel
 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, ADX40, Linear Trend Lines, Fibonacci Retracement, ATR and Elliot Waves. +Downward Channel +Bearish Engulfing
1% capital risked for potentially 3.6R
Open: 1240 | Stop loss: 1270 (-30 points) | Take Profit: 1130 (+110 points)
Remarks: The HTF swing strategy could also have been feasible. What’s important is trading with the trend + from an area of value.
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.
At 50% of 2nd impulse or a swing L/H established, shift stop to break even.
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: That was some wicking out. Perhaps, place the stop loss after a round number. Idea is still valid…
A small shift of trend line and the wick is expected to be expected.
Look to re-enter the trade on 4H timeframe with the backing of 30/150SMA.