T22 – EUR/JPY

ENTRY

IDEA (Weekly)

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

download (1).pngThe structure on the weekly – downtrend ended with price breaking out and forming the flag which has broken out and is currently on a strong uptrend (all the Euro crosses). Potential to reach the top of the structure but will see as that goes. Multiple weekly inside bars provided the structure to trade at the break out off.

SETUP (4H)

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

download (2).pngThe weekly inside bars were seen as the pennant on the 4H. Trend is strong – very shallow pullbacks. Price consolidated around resistance instead of bouncing off and that registered an oversold reading on the stochastic, on an uptrend, a buy signal.

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

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

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 3.3R

Entry: 130.85 | Stop loss: 128.45 (-240 points) | Take Profit: 138.85 (+800 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

download (7).png

Stop Loss

Manual. Reason: The weak buying suggests that could be wave B in the corrective structure. Stop loss is at a position where it’s likely to be taken out.

Trailing Stop

Take Profit

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