formulate a trade idea – your analysis, a likely possibility // set-up play out
Long term structure – price on a potential support with clear rejection of the level. A rally to the top of the structure is possible.On the daily, the long term trend has changed with price flipping over the 150SMA. An ascending triangle has formed at weekly support.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
No clean trend on the 4H as shown on the ranging daily. Criteria still met however.
Initially keyed in a stop buy order for the mid range entry strategy after the completion of wave C but chickened out after price action was not “bullish enough”. Trade would be at breakeven and running >1R now if that analysis was trusted.
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✓)
IMPULSE registering ADX>25 (✓) ADX51
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 5.8R
Entry: 1.8 | Stop loss: 1.766 (-340 points) | Take Profit: 1.998 (+1980 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: Worst place for a buy + stop loss likely to be taken out. False break out and structure is forming wave E in this expanding triangle. Will apply the mid range entry strategy on the next trade…