T5 – USD/JPY

ENTRY

IDEA (D)

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

download (6)Long term down channel + recently formed up channeldownload (7)Price bounced off an area of support with a clear bullish engulfing. Multiple inside bars formed within the following bullish candle suggesting higher prices very likely after a coil.

SETUP (4H)

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

download (8)Price broke out of the falling wedge and formed a coil (pennant) seen as inside bars on the daily.

TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓) 50 SMA

IMPULSE registering ADX>25 (✓) ADX30

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

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 1.8R

Entry: 111.85 | Stop loss: 110.55 (-131 points) | Take Profit: 114.3 (+244 points)

Remarks: Order was not executed at the exact price, insignificant difference of 1 point. TP level might not be conservative enough.

MANAGEMENT

If running >1R + swing established, risk halved

USDJPY B:E updateIf 20% left to take profit, shift to break even (staircase structure also formed on 1H as previous resistance turned support)

download.pngOnly the spread left between TP order (which in hindsight is not very conservative, but its fairly stretched), 0.5R secured.

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

EXIT

download (5).png

Stop Loss

Manual. Reason:

Trailing Stop

Take Profit

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