Daily // 4H // 1H // 30m // 15m
get context for the set-up
On the daily/weekly, price broke out of a long forming triangle and also the long term channel. On the 1H/4H, the trend is clearly defined with the Fibonacci channel and price is retesting the bottom line with a corrective structure after a prior impulse. It broke the corrective TL. Did not enter with a bang (big bullish candle) as hoped but the stop distance should be enough buffer.
The take profit is next resistance on daily, however, that is quite subjective. Hence, TP is the top of the channel on 1H
TREND on entry timeframe determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX33
COIL structure clear formation relative to prior impulse (✓)
Flag // Rectangle // Pennant // Wedge // Triangle // Diamond
Fibonacci 50%–61.8% // S&R Level // Trend Line // Moving Average
ABC // ABCDE // Extended Combo
Entry @ Break of Structure // Area of Value + Candlesticks
Stop Loss @ +1ATR away from last wick // SMA as guide (Channel bottom line)
Take Profit @ Length of Prior Impulse // Next Area of Value
1% capital risked for potentially 3.4R
Entry: 1.555 | Stop loss: 1.548 (-70 points) | Take Profit: 1.579 (+240 points)
If price breaks out favourably, risk halved
If two-thirds of anticipated impulse, shift to break even
If breakout + strong momentum + space to run, extend take profit and use trailing stop.
Remarks: Hard to find a fault with this one. Traded with the trend from an area of value. Perhaps the high only made it to the median and did not test the upper resistance. Coil was somewhat there arguably.
Could also be that I fucked up getting the proper channel out. Lesson: Clean impulse + choppy correction. Can’t work one without the other.
Also, no decisions are to be made based on channels – just like trend lines and moving averages.