T1 – AUD/USD

ENTRY

IDEA (D)

formulate a trade idea – your analysis, a likely possibility // set-up play out

download (3).pngDaily conditions: Range. Price bounced off a support level and currently has bullish momentum towards the upside and likely to retest the resistance zone.

Conservative take profit about the length of the prior impulse wave.

SETUP (1H)

trigger for the mentioned idea, what you want to see: clean impulse + choppy correction

download (4)

TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓)

IMPULSE registering ADX>25 (✓) ADX47

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 (50&150 TAZ)

Simple // ABC // ABCDE // Extended Combo

ORDER

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

Stop Loss @ +1ATR away from last wick // Before Impulse Start

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

1% capital risked for potentially 2.3R

Entry: 0.76 | Stop loss: 0.7557 (-43 points) | Take Profit: 0.77 (+100 points)

MANAGEMENT

If running >1R + swing established, risk halved

If 20% left to take profit, shift to break even

If strong momentum + space to run + aligned with long term view, extend take profit and use trailing stop

EXIT

download

Stop Loss

Manual. Reason:

Trailing Stop

Take Profit

Remarks: Bad stop loss placement as idea is still valid but trade has been stopped out. This flag could be the correction structure instead of the “triangle”, this might be the worst place for a sell order.download (1)

REVIEW

download (1)Stop loss should have been before impulse start. Idea valid, execution failed.

download.pngIf the stop loss was placed at an appropriate level, this trade would be running 2.5R now, if bought at the ideal low would be running 8R now. Indeed, it was the worst place for a sell order.

IF in huge block letters of course. Early take profit might have been in the way, but a loss would have been avoided.

Lesson: Have faith in the trend – the idea is invalid until it really is, which is where the stop loss should be. But good risk management made this loss a lot easier, that’s a rule to never violate.

Re-entered the market T11

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