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 (✓) S to R
 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.
1% capital risked for potentially 1.88R
Open: 1.4245 | Stop loss: 1.437 (-125 points) | Take Profit: 1.401 (+235 points)
Remarks: Hopefully this execution and management is better than T14
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. + 30/150SMA cross
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. There is a possibility that price might not be able to reach TP as bearish momentum weakens upon hitting a former resistance level, 0.6R secured. Shall consider it as breakeven if TS triggered as less than 1R.
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: The ABC wave which the profit target was based on might have already played out as about 80% of the projected wave has completed. A bullish engulfing at the support level followed by little bearish candles suggests that downside might be limited and the TP level have a lesser chance of getting hit.
The lack of bearishness to keep the trade open as seen with a falling wedge + price is at about 50% of prior impulse.
Short position covered just in the nick of time as the falling wedge reversal breaks out.