formulate a trade idea – your analysis, a likely possibility // set-up play out
Price has bounced off daily support (also diagonal support on weekly) – the buy signal came in the form of an inside bar.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
The structure of the inside day bar as seen on the 1H. It also retested the resistance level that was broken out.
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓) 50/150/200 SMA
IMPULSE registering ADX>25 (✓) ADX35
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 2.8R
Entry: 1.0602 | Stop loss: 1.0488 (-114 points) | Take Profit: 1.093 (+328 points)
Spotted the 5 wave impulse high ending at the channel line, could have exited for 1.7R. But holding it out – analysis mentioned on chart.
If running >1R + swing established, risk halved
If 20% left to take profit, shift to break even – shifted after a sell setup formed after the impulse. Regretting not exiting at the end of Wave 5…
If strong momentum + space to run + aligned with long term view, extend take profit and use trailing stop