formulate a trade idea – your analysis, a likely possibility // set-up play out
Possible diamond reversal pattern on the weekly which happens at an even longer term support.Another possible structure – The D wave has a 3 pattern structure and price goes down and retests the lows. If the diamond still stands, this could be wave E’s wave B (see below). This trade aims to capture wave C of wave E and perhaps anticipate the break out of the diamond.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
Sell setups were initially forming, but they played out with little momentum and those small structure formed a falling wedge.
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX40
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 (50/100SMA)
Simple // ABC // ABCDE // Extended Combo
Entry @ Break of Structure // Area of Value + Candlesticks
Stop Loss @ +1ATR away from last wick // Before Impulse Start (Smaller 1H buy setup formed and stop loss placed right below the bullish engulfing)
Take Profit @ Length of Prior Impulse // Next Area of Value
1% capital risked for potentially 2.3R
Entry: 1.0685 | Stop loss: 1.058 (-105 points) | Take Profit: 1.093 (+245 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
Manual. Reason: Now the sell setup corrective structure has formed. This whole ABC could be the longer term wave B. On the 1H, this 3 waves structure could be seen clearly.