Daily/4H(3H)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 (✓)

[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 (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.


download (1).png

[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: Manually exited at real stop loss level as buyers seem strong; as seen with the several bullish candles and with context of higher timeframe.