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 (✓)
 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, ADX35, Linear Trend Lines, Fibonacci Retracement, ATR and Elliot Waves. + Timed swing low
1% capital risked for potentially 2.3R
Open: 1.06 | Stop loss: 1.045 (-150 points) | Take Profit: 1.095 (+350 points)
Remarks: A retry after T3 failed, this time with the confluence of another kind of analysis. Plan still sticks.
Keying in the trade, use volatility stop placed under/above an established swing L/H or moving average cross or estimating volatility using ATR. +0.5ATR from swing low, did not use +1ATR as bullish candle was rather huge.
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
Yes, uptrend on the daily but it was a massive downtrend on the 4H. Should have waited for that to change first before going long. Entry with a continuation pattern or impulse-correction-impulse on the 4H would’ve led to a more preferred outcome. Entry price could have been the same since that was a key level for a break out point. Timed swings are not a tried and tested method of analysis, therefore, do not use it in future. This had other confluences so still FTP but traded against the trend of the 4H.