Counter-Trend Trade

Blue line = Take Profit

Black line = Entry Point

Red line = Stop Loss

From the chart, we can see an uptrend wave pattern formed with LL-LH-HL-HH, and right after the HH point, the next low happened to be at the price of the previous HL point. From that, I can assume there is a fairly strong support level at that price, thus stoploss had been set few pips below that support level.

However, this was a counter-trend entry. The general trend was bearish today, and I am going Long. Therefore I only entered the market after a support level was formed, for assurance that it is not going to head back downwards easily. 

The take profit level which I had set is very close to the previous high wave point. This is mainly due to the facts that 

1) The trade is a counter-trend trade,

2) S1 level will be acting as a resistance level, and

3) London market will be closing in an hour time. 

Update: Take Profit Hit