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

download (10)Price has retraced back and bounced off the level which was a former resistance on the daily. Bullish candle followed by 3 inside bars suggests a potential move higher after a market coil. Additional confluence: Stochastic has came out of the oversold level – a buy signal during an uptrend.


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

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

IMPULSE registering ADX>25 (✓) ADX33

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

There is also a buy setup on the 1H which can be seen on the 4H. The market structure on the 1H – previous resistance turning into support


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 2.1R

Entry: 1.482 | Stop loss: 1.465 (-170 points) | Take Profit: 1.518 (+360 points)


EURAUDriskhalvedIf 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


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Stop Loss

Manual. Reason: (1) Buy set-up has already played out. (2) Number of impulse and corrective waves in that 1H trend suggests that the cycle might be over and a bigger correction is due. (3) On the daily, there is a high possibility that this trade was Wave B in a likely ABC correction back down to the 0.5 level. (4) On the 4H, swing low has equaled or took out the previous one suggesting that the uptrend is over and market is in stage 3 and if that swing high remains, more downside is to be seen. (5) Bullish set-ups on other Aussie pairs. 0.3R from this trade.

Trailing Stop

Take Profit