T28 – EUR/NZD

IMPULSE – CORRECTION – IMPULSE

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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 (✓) Flag

[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, ADX30, Linear Trend Lines, Fibonacci Retracement, ATR and Elliot Waves.

1% capital risked for potentially 2.1R

Open: 1.551 | Stop loss: 1.529 (-220 points) | Take Profit: 1.598 (+470 points)

Remarks: Falling wedge reversal, break out, flag and entry. Looks to be the start of an uptrend possibly. In terms of management, might want to extend TP if there’s strong bullish momentum or add to existing positions. Seems like this is Wave 3.

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.

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.

download (4).pngAt 50% of 2nd impulse or a swing L/H established, shift stop to break even.

download (2).pngAt about 80% of 2nd impulse, shift stop to the 50% mark or below/above swing L/H. 0.77R secured.

download (3)Take profit target removed as it’s still very bullish. Will give it another day and close before the weekend where there will be some event concerning the Euro.

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

Remarks: Well, shouldn’t have removed TP in the first place. But what can you do now, still bullish however, just important to close it before the weekend. Risked 0.1R for more, quite worth the risk. Now, 2R.

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