This is an example of a setup on AUDUSD .
It has perfect confluence at 0.7645 with a 113 and 1618 fib confluence.
I missed the 1st opportunity to sell last Friday and I have been patiently waiting for a retracement for a type 2 entry.
I would have hit SL on this trade if i executed this trade using a pending order.
When I started trading Harmonics many years back, I used to just execute my trades by using a pending order which I learnt from Jason Stapleton.
It led to a less than 50% winning rate for me for many years but I was still able to squeak out some profits as I enjoyed a couple of excellent risk to reward trades in most years.
After meeting Scott Carney this year, I managed to fine-tune my trade execution to avoid losing trades like this.
This is what I do now.
1. 90% of my trades are now market orders, only 10% of my trades are executed with pending orders.
2. Always draw my big ED channel on the daily/h4 timeframe, I only execute trades which are near the extremes of the Ed channel.
3. Your setup should be aligned the the ED channel. Sloping down? Look to sell. Sloping up? Look to buy.
4. I like to wait for divergence confirmation at the PRZ before executing my trades.
5. This enabled me to improve my winning % to more than 60% over the past 3 months.
What is a breakout?
This was mentioned in Vol 2 of Scott's book.
breakout is when the PRZ of a setup is being broken out strongly within one or a few .
This signifies that the market is no longer respecting this PRZ zone and it wants to go further.
I expect AUDUSD to challenge $0.77 in the upcoming days/weeks after this breakout is completed.
That is where the daily ED channel extremes are and I will be looking to take some sell trades if there are patterns completing at that area.
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