T22 – AUD/SGD

IMPULSE – CORRECTION – IMPULSE

download (2).pngdownload (4).png

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 (✓)

[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, 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.

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. +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.

EXIT

download.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

REVIEW

download (1).pngYes, 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.

Advertisements