T18 – USD/SGD

FALLING WEDGE REVERSAL

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ENTRY

Daily/4H/1H/30mins timeframe (select only 1)

[1] Plot out linear resisting and supporting trend lines that form the wedge (✓)

[2] Clear market structure of the wedge with 5 touches (✓)

[3] Identify squeeze – low volatility (✓)

[4] Stop order for a break out (✓)

Additional confluence: Support/Resistance on higher timeframe, Candlestick Patterns or Elliot Waves

1% capital risked for potentially 2R

Open: 1.4035 | Stop loss: 1.3895 (-140 points) | Take Profit: 1.4315 (+280 points)

Remarks: 2nd trade running on this pair after T11

MANAGEMENT

At entry, stop loss placed under/above the swing point which is anticipated to be the lowest/highest.

Take profit placed at the next key support or resistance level.

download.pngExtra: Risk halved as price approaches the resisting trend line.

If breakout from the wedge, shift stop to breakeven.

At 80% of take profit, shift stop to 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.

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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