formulate a trade idea – your analysis, a likely possibility // set-up play out
The 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.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
The 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
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)
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: 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.