formulate a trade idea – your analysis, a likely possibility // set-up play out
Downtrend on the daily and 4H with price bouncing off a sell area. There were 2 inside 4H bars but it was a false breakout and price is now back within the range (perhaps a short pullback before continuation)
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
Structure on the 1H has changed with the 50&100SMA confirming the downtrend. Traded the breakout after a rectangular ABC, not the best entry clearly.
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX26
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 2.1R
Entry: 0.99 | Stop loss: 0.996 (-60 points) | Take Profit: 0.9773 (+127 points)
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
Remarks: Terrible entry, even worse place for a stop loss. Might re-enter the market again.
Sell order placed again. This time entry is from an area of value and stop loss is where idea is invalidated. Triggered @ T18.