T14 – GBP/NZD

ENTRY

IDEA (W/D)

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

download (1).pngA cup and handle pattern might be in play. Any way, price bounced off an area of support (former break out point) and then a coil succeeded the bounce. There is also a trend line starting from the flash crash candle connecting all the lows for an added confluence.

Fun fact: The 50 & 150 SMA has crossed upwards on the daily after the rally that made up the cup.

SETUP (4H/1H)

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

download (2).pngNot the best trigger with those 2 candles, but still valid according to the plan

TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓) 50&150SMA

IMPULSE registering ADX>25 (✓) ADX27

COIL structure clear formation relative to prior impulse (✓)

Flag // Rectangle // Pennant // Wedge // Triangle // Diamond (adjustment of the coil lines and this could be an expanding triangle)

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 2R

Entry: 1.793 | Stop loss: 1.753 (-405 points) | Take Profit: 1.879 (+855 points)

MANAGEMENT

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

EXIT

download1.png

Stop Loss

Manual. Reason:

Trailing Stop

Take Profit

REVIEW

download (1).pngPossible sell structure? Perhaps the weak impulse could’ve been a reason to avoid the trade. But it registered ADX>25 and no rules were broken.

Oh well, gotta take the L on this one.

Advertisements