The X-A leg is generated by an initial price swing in one direction.
The market forms the B if it touches at least a 50% retracement of the XA and it does not touch a 61.8% retracement of the XA.
The market forms the C if it touches at least a 38.2% retracement of the AB and it does not exceed the A.
The Market forms the D (completion point) by fulfilling an 88.6% retracement of the
If Target 1 one is hit, conventional rules state that half of the initial position should be closed and the stop loss for the remaining half should be placed at the original entry point (breakeven).
The market forms the B if it touches at least a 50% retracement of the XA and it does not touch a 61.8% retracement of the XA.
The market forms the C if it touches at least a 38.2% retracement of the AB and it does not exceed the A.
The Market forms the D (completion point) by fulfilling an 88.6% retracement of the
If Target 1 one is hit, conventional rules state that half of the initial position should be closed and the stop loss for the remaining half should be placed at the original entry point (breakeven).
Trade closed: target reached:
1st PROFIT TARGET REACHED
Trade closed: target reached