Day trade setup

1. 4-hour Chart: Price is above the 10 EMA (uptrend).
2. 1-hour Chart: Price retraces to the 10 EMA and forms a bullish engulfing pattern.
3. Entry: Enter a long position at the close of the bullish engulfing candle.
4. Stop Loss: Place it below the recent swing low on the 1-hour chart.
5. Take Profit: Set a take profit at 1.5 to 2 times the risk or trail the stop loss below the 10 EMA on the 1-hour chart.

Oil

1. 4-hour Chart: Price is below the 10 EMA (downtrend).
2. 1-hour Chart: Price retraces to the 10 EMA and forms a bearish engulfing pattern.
3. Entry: Enter a short position at the close of the bearish engulfing candle.
4. Stop Loss: Place it above the recent swing high on the 1-hour chart.
5. Take Profit: Set a take profit at 1.5 to 2 times the risk or trail the stop loss above the 10 EMA on the 1-hour chart.

By following this strategy, traders can align their trades with the prevailing market trend, optimize their entries and exits, and manage risk effectively.


Risk Management Plan (One to two setups a day)

1. Position Sizing:
   1. Risk no more than 1-2% of your trading capital on any single trade.

   
   
   

2. Stop Loss:
   1. For long positions, place the stop loss below the most recent swing low on the H1 chart.
   2. For short positions, place the stop loss above the most recent swing high on the H1 chart.
   3. Ensure the stop loss is within your risk tolerance level.

   
   
   

3. Take Profit:
   1. Set a take profit target at least 1.5 to 2 times the distance of your stop loss (Risk:Reward ratio of 1:1.5 or 1:2).
   2. Alternatively, use significant support/resistance levels or round numbers to set take profit.

   
   
   

4. Trailing Stop Loss:
   1. For long positions, trail the stop loss below the 10 EMA on the H1 chart as the price moves in your favor.
   2. For short positions, trail the stop loss above the 10 EMA on the H1 chart as the price moves in your favor.