T23 – NZD/CAD

HTF SWING

12

ENTRY

Weekly/Daily/4H/1H/30mins timeframes (select 2)

[1] Ensure that price is range bound/strongly respecting S/R on the higher timeframe (✓)

[2] Go down to the lower timeframe and identify the accumulation/distribution/swing point Correction (inside bar) to the impulse succeeding the pinbar and engulfing as seen on daily

[3] Plot out ST-TL and LT-TL confirmed by the 30SMA and 150SMA. As price is range bound, will be looking for the existing ST trend to reverse. Invalid

[4] Price breaks and closes the ST-TL and 30SMA (✓)

[5] Stop order at the break of the accumulation/distribution structure After correction

Additional confluences: Head & Shoulders, Support/Resistance on the lower timeframe, Fibonacci Retracement, Candlestick Patterns on the higher timeframe

1% capital risked for potentially 2.6R

Open: 0.9346 | Stop loss: 0.9256 (-90 points) | Take Profit: 0.9595 (+240 points)

Remarks: Nil

MANAGEMENT

At entry, stop loss placed under/above the lowest/highest point of the support or resistance on the higher timeframe. Placed under the correction (inside bar) + buffer

Take profit placed before the support or resistance that makes up the range.

downloadExtra: Risk halved.

download (1).pngAt 50% of the range, LT-TL or 150SMA – shift stop to breakeven.

At 80% of the range, shift stop to 50% mark or below/above swing L/H.

If price breaks and closes past the 30SMA on HTF or 150SMA on LTF, tighten stop loss and prepare for manual exit.

EXIT

download (4)

[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

Remarks: Seems that the continuation rectangle has failed (or maybe false breakout?). Since entry point (& breakeven stop loss) is at the 50% mark of the impulse wave, it is likely that price may come back to that level. If it does, with a bullish sentiment, will look to go long again. Took the trade out at 0.5R for now.

Advertisements