T16 – SGD/EUR

IMPULSE – CORRECTION – IMPULSE

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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 (✓) Yes, but price in general range: SMA not applicable

[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 (R to S), ADX50, Linear Trend Lines, Fibonacci Retracement, ATR and Elliot Waves.

1% capital risked for potentially 1.8R

Open: 0.6689 | Stop loss: 0.6663 (-26 points) | Take Profit: 0.6738 (+49 points)

Remarks: On the back of a falling wedge reversal break out (which I missed), now trading the correction on the impulse wave. Structure is supported by daily candlesticks.

MANAGEMENT

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 (2).pngAt 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. should’ve executed this

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

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