formulate a trade idea – your analysis, a likely possibility // set-up play out
Condition on the daily: Range bound. There was a bullish engulfing at an area of resistance on the HTF. What is a setup that could go against this trade – the 3 drives pattern. Therefore, entry is a teeny bit too early.
trigger for the mentioned idea, what you want to see: clean impulse + choppy correction
Was looking for a sell setup similar to the ones in the previous sell offs. This one came too early and FOMO kicked in… Stop sell should be under this triangle that is likely to form.Setup on the 1H: What was thought to be a complete ABCDE bearish flag is now just wave A in a bigger structure likely to be a triangle.
TREND on entry timeframe & 4H chart, determined by SMA if subjective (✘) DNF 50/100SMA still up and strong // upward channel still not broken
IMPULSE registering ADX>25 (✓) ADX36
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 4.2R
Entry: 48.9 | Stop loss: 50.5 (-160 points) | Take Profit: 42.1 (+680 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: Did not follow plan. Got out at breakeven when there was a chance. A triangle has formed anyway, 50% chance of it moving up or down.