T20 – USD/CAD

download (3)

ENTRY

Daily // 4H // 1H // 30m // 15m

Analysis

get context for the set-up (what you want to see: clean impulse, choppy correction)

What’s seen could possibly be Wave 1 breaking out of an accumulation, followed by a flat Wave 2 correction, a Wave 3 impulse and a rather steep Wave 4 pullback. Visible on both 4H and daily charts. Price has now retraced to the 0.618 area of the prior impulse. Anticipating Wave 5.

The 30SMA defines the trend and price has convincingly broke above it. Other confluences for the end of Wave 4 – the formation of an impulse and corrective structure and the inverse head and shoulders pattern visible on the 1H but can still be seen on 4H. Area of value additional confluence: projected trend line from start of Wave 1 and Wave 3.

Criteria

TREND on entry timeframe determined by SMA if subjective (✓)

IMPULSE registering ADX>25 (✓) ADX35

COIL structure clear formation relative to prior impulse (✓)

Continuation/Correction/Coil Structure

Flag // Rectangle // Pennant // Wedge // Triangle // Diamond (Steep Pullback)

Fibonacci 50%–61.8% // S&R Level // Trend Line // Moving Average

ABC // ABCDE // Extended Combo (12345)

Orders

Entry @ Break of Structure // Area of Value + Candlesticks

Stop Loss @ +1ATR away from last wick // SMA as guide

Take Profit @ Length of Prior Impulse // Next Area of Value

1% capital risked for potentially 2.2R

Entry: 1.352 | Stop loss: 1.342 (-100 points) | Take Profit: 1.374 (+220 points)

Remarks:

download (3)On the 1H (showing the corrective wave above on 4H), the median line is playing out as a support after being resistance.

MANAGEMENT

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.

EXIT

download (1).png

Stop Loss

Manual. Reason:

Trailing Stop

Take Profit

Remarks: Turns out it was the flag for the downside break. Stop loss should have been another stop sell order?

REVIEW

download (2).pngIf you had consulted the daily timeframe to formulate an idea, you would(maybe?) have noticed the channel price was trading within and the continuation pattern in the middle of it.

 

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