Possible Wave 5 to follow completion of Wave 4 (Triangle)
It appears a contracting triangle has appeared in wave 4 of an impulse (A contracting triangle can only occur in wave B, X or 4). A wave 5 impulse at the same degree as the contracting triangle could have already begun but I am taking a conservative approach since the substructure of the contracting triangle is not ideal.
Entry Level:
Once the extreme of wave D is broken.
Stop Loss:
Just beyond the extreme of wave E.
Target:
My system says pattern over hard take profit targets so I will wait for a 5 wave impulse to complete while managing the trade along the way (Lessen Risk -> Eliminate Risk -> Protect Open Profits). As a guideline wave 5 could possibly end around the line drawn from the extreme of wave 3, parallel to a line connecting the extreme of waves 2 and 4. Wave 5 could also possibly end around equal in size to wave 1 since wave 3 extended.
It is not part of my strategy at the moment but I could possible add more trades during wave 5 since it is likely to take months to complete.
Only posting this as an idea. I am trading on a demo account so I would advise not to read into this too much :)
Entry Level:
Once the extreme of wave D is broken.
Stop Loss:
Just beyond the extreme of wave E.
Target:
My system says pattern over hard take profit targets so I will wait for a 5 wave impulse to complete while managing the trade along the way (Lessen Risk -> Eliminate Risk -> Protect Open Profits). As a guideline wave 5 could possibly end around the line drawn from the extreme of wave 3, parallel to a line connecting the extreme of waves 2 and 4. Wave 5 could also possibly end around equal in size to wave 1 since wave 3 extended.
It is not part of my strategy at the moment but I could possible add more trades during wave 5 since it is likely to take months to complete.
Only posting this as an idea. I am trading on a demo account so I would advise not to read into this too much :)