10:1 Risk-to-Reward Setup - Bull Flag Breakout with Multi-Time
This trade setup shows a confluence of multiple factors, aligning with a high-probability approach. Here's the breakdown:
Bull Flag Breakout:
The trade initiates after identifying a bull flag, which is a common continuation pattern following an impulsive upward move. This flag signals consolidation before a further upward push. The breakout from the bull flag gives a strong entry point.
Entry Criteria:
The entry was placed at 2560.404, slightly above the breakout area, ensuring momentum confirmation.
A Stop-Loss (SL) of 30 pips was positioned below the structure, protecting the trade while allowing enough room for price fluctuations. This is crucial to avoid tight stops that may trigger prematurely.
Key Support/Resistance Levels:
5M Lower Time Frame (LTF) S/R: This level acts as a lower frame confirmation zone, ensuring support below the bull flag breakout.
15M Support/Resistance (S/R): The larger structure aligns with the 5-minute support, adding strength to the trade by recognizing that price is supported by multiple timeframes.
Target (TP) and Higher Time Frame (HTF) Confluence:
300 Pips TP is based on the HTF Trendline, offering a solid risk-to-reward ratio of 10:1. This suggests the trade is aligned with a broader market trend, increasing the probability of success.
Zone of Liquidity (LQZ):
5M LQZ represents a liquidity grab, further confirming that the market might push upwards after grabbing liquidity near support.
Key Confluences:
Multi-Timeframe Analysis: Price action supports the move on both lower and higher timeframes.
Risk Management: A well-defined stop-loss ensures minimal risk with a substantial reward target.
Pattern Identification: The bull flag within the trend adds reliability, as flags in impulsive moves offer strong continuation signals.
This trade follows the "Rule of Three," where at least three confirmations (bull flag, multiple timeframe support, and risk/reward alignment) give the highest probability of success.
Bull Flag Breakout:
The trade initiates after identifying a bull flag, which is a common continuation pattern following an impulsive upward move. This flag signals consolidation before a further upward push. The breakout from the bull flag gives a strong entry point.
Entry Criteria:
The entry was placed at 2560.404, slightly above the breakout area, ensuring momentum confirmation.
A Stop-Loss (SL) of 30 pips was positioned below the structure, protecting the trade while allowing enough room for price fluctuations. This is crucial to avoid tight stops that may trigger prematurely.
Key Support/Resistance Levels:
5M Lower Time Frame (LTF) S/R: This level acts as a lower frame confirmation zone, ensuring support below the bull flag breakout.
15M Support/Resistance (S/R): The larger structure aligns with the 5-minute support, adding strength to the trade by recognizing that price is supported by multiple timeframes.
Target (TP) and Higher Time Frame (HTF) Confluence:
300 Pips TP is based on the HTF Trendline, offering a solid risk-to-reward ratio of 10:1. This suggests the trade is aligned with a broader market trend, increasing the probability of success.
Zone of Liquidity (LQZ):
5M LQZ represents a liquidity grab, further confirming that the market might push upwards after grabbing liquidity near support.
Key Confluences:
Multi-Timeframe Analysis: Price action supports the move on both lower and higher timeframes.
Risk Management: A well-defined stop-loss ensures minimal risk with a substantial reward target.
Pattern Identification: The bull flag within the trend adds reliability, as flags in impulsive moves offer strong continuation signals.
This trade follows the "Rule of Three," where at least three confirmations (bull flag, multiple timeframe support, and risk/reward alignment) give the highest probability of success.
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Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
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