IMPULSE – CORRECTION – IMPULSE
Daily/4H(3H)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 (✓)
 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 (anticipating Wave C).
1.9% capital risked for potentially 1.3R (automated volatility stop)
1% capital risked for potentially 2.6R (after shift to real stop)
Open: 1.427 |Volatility stop: 1.443 (-160 points) | Stop loss: 1.4354 (-84 points) | Take Profit: 1.405 (+220 points)
Remarks: Trade valid on both 4H and 1H. Used 3H timeframe as it shows a clearer picture.
Not sure what I was thinking when keying in the levels for this trade; made it a little too complicated. Could’ve been 2R with a normal stop with buffer given for some volatility.
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: Manually exited at real stop loss level as buyers seem strong; as seen with the several bullish candles and with context of higher timeframe.