A pullback inside an advance
Separate a valid setup from its eventual result.
Illustrative simulation · No historical performance claim01. Read the information available.
The simulated swings have advanced, with a pullback holding above the prior reference low. The final visible candle has closed at 4,002. This example assumes the documented confirmation condition has been met; it is not a universal entry rule.
02. Apply the documented plan.
The study plan permits a long at 4,002, invalidates it at 3,994 and sets a target at 4,018. Exposure must fit a separately defined budget. Assume a fill at the stated entry and, for the outcome illustration, execution at the first stop or target touched. Costs are excluded from the R result.
Target touched · +2R before costs
The subsequent simulated path reaches 4,018 before touching 3,994. The favorable distance is USD 16 per ounce against USD 8 of initial stop distance: +2R under the stated fill assumptions. This is one constructed outcome, not evidence of a profitable method.
What this case teaches
The setup can qualify and still require a risk calculation. A winning example cannot establish the frequency, costs or distribution of future results. Compare this case with the compliant loss later in the library.
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