formulate a trade idea – your analysis, a likely possibility // set-up play out
Price is within a long term range on the weekly. Bounced off support with upwards momentum with the likelihood of testing the resistance area.
The bullish momentum as seen on the daily. Price could possibly be forming an upwards channel. The median line drawn is still subjective. A build-up at an area of resistance might suggest a break out higher.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
Entering at mid-range, before the break out. Shift to breakeven once price is at the top of the range to standby for break out failure.
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX42
COIL structure clear formation relative to prior impulse (✓)
Flag // Rectangle // Pennant // Wedge // Triangle // Diamond
Fibonacci 50%–61.8% (38.2%) // S&R Level // Trend Line // Moving Average
Simple // ABC (3-3-5) // ABCDE // Extended Combo
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 3R
Entry: 1.119 | Stop loss: 1.1088 (-102 points) | Take Profit: 1.15 (+310 points)
If running >1R + swing established, risk halved
If 20% left to take profit, shift to break even. Shifted as previously planned when price reaches range resistance. Possibilities (1) Breakout of range, (2) Return back to the bottom for Wave E and will be looking to buy again, (3) Breakdown for a major correction
If strong momentum + space to run + aligned with long term view, extend take profit and use trailing stop