formulate a trade idea – your analysis, a likely possibility // set-up play out
On a bigger weekly downtrend. Possibly a diamond (expanding + contracting triangle) trend reversal pattern. Any way, price is trading within a range on the daily with a small break mid-range – suggesting a continuation pattern to retest the support or potentially spark a massive downtrend.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
Re-entry of previous T26 trade. This time with a better strategy. Entry after bounce off top flag (expanding triangle) or a horizontal false break after a lower timeframe fading bulls. The structure should be complete but the plan is to shift to breakeven after reaching the bottom of the range. Additional confluence is the impulse to correction bar ratio of ~2 and oversold reading on Stochastic.
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX50
COIL structure clear formation relative to prior impulse (✓)
Flag // Rectangle // Pennant // Wedge // Triangle (Exp) // Diamond
Fibonacci 50%–61.8% // 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 3.1R
Entry: 2.989 | Stop loss: 3.11 (-12 points) | Take Profit: 2.61 (+38 points)
Remarks: Entry prices are based on broker CMC Markets, not TradingView.
If running >1R + swing established, risk halved
If 20% left to take profit, shift to break even (as per strategy and plan)
If strong momentum + space to run + aligned with long term view, extend take profit and use trailing stop
Well, price did not break out of the range. Bounced off the support and about to retest the resistance. Sell again with the same strategy on the next wave.