Daily // 4H // 1H // 30m // 15m
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.
TREND on entry timeframe determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX35
COIL structure clear formation relative to prior impulse (✓)
Flag // Rectangle // Pennant // Wedge // Triangle // Diamond (Steep Pullback)
Fibonacci 50%–61.8% // S&R Level // Trend Line // Moving Average
ABC // ABCDE // Extended Combo (12345)
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)
On the 1H (showing the corrective wave above on 4H), the median line is playing out as a support after being resistance.
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: Turns out it was the flag for the downside break. Stop loss should have been another stop sell order?
If 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.