Daily // 4H // 1H // 30mins
Support & Resistance // Trend Lines & Channels // 21&50 Moving Averages // Elliot Waves // Multiple Timeframe Reference // Fibonacci Levels
get context for the set-up
The weekly showed that the downtrend is over with a clean break of the TL and also after bouncing off a key level. Bullish rectangle should be Wave 2 and currently trying to catch Wave 3. Managing downside is important as Wave 4 might possibly be a steep pullback.
TREND on entry timeframe determined by 21&50 SMA if subjective (✓)
ADX>25 registered on impulse wave (✓) ADX30
Low volatility when keying order Area of value (✓)
Flag // Pennant // Wedge // Triangle // Rectangle
Simple Retracement [Fibonacci 50% // S&R Zone // 2150 TAZ]
Falling Rising Wedge // Complexed ABC pullback
Higher Timeframe Inside Bar
Entry @ Break of Structure // Area of Value + Candlesticks
Stop Loss @ +1ATR away from last wick // 50 SMA as guide
Take Profit @ Length of Prior Impulse // Next Area of Value
1% capital risked for potentially 2R
Open: 1.472 | Stop loss: 1.446 (-260 points) | Take Profit: 1.524 (+520 points)
Remarks: There was an inside bar on the weekly when the trade was keyed in, not anymore now obviously. But the point is the same. A small correction in a major breakout, an opportunity for entry.
A bit late, the bullish rectangle would have been more ideal. Entering on the second chance after a small retracement at the start of the break out which should be Wave 3.
Shift to Break Even
Initial Stop Loss
Remarks: Stopped out, even though idea was valid. Was not a good entry to start off with. Stop loss had no balance of having a proper buffer and being tight enough for R-performance to be favourable. In the future, avoid such trades.