formulate a trade idea – your analysis, a likely possibility // set-up play out
On the weekly chart, there is a clear downward channel with a valid median line. Price has seemingly found the bottom and bounced off of it. A head and shoulders pattern followed by bullish market structure suggests further upside (strong rally possible) – at least for the setup to play out.
Added confluence: Trend defining moving average (80/100 weekly SMA) has turned around with price trading above it and acting as dynamic support. MACD divergence starting from the swing low of the left shoulder and the indicator continues to make higher lows.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX27
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
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 3.5R
Entry: 0.775 | Stop loss: 0.757 (-180 points) | Take Profit: 0.838 (+630 points)
Remarks: Will be looking to add on to existing positions on 4H trend + value.
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