An ideal is where the AB-leg is exactly equal to CD and where BC is a . of AB.
Targets and SL are still identical to the previous post. See also the chart of JasperForex who's got other reasons but approximately the same PRZ for a in a .
There are time when both work out and both proponent are right. These are no absolute cast in stone. Perhaps you care to illustrate what you have in mind using your chart for us all to learn. That would be more constructive.
You are 100% right.
But you do understand that retracement often are significant. So what is intellectually so difficult for some to grasp that if risk reward potential are favourable then the trade has some merits. Of course even the trend comes to an end at some point which starts of with what looks like mere retracement and how would you know that is is just a retracement or reversal?
So unnecessary argument for the sake of it does not reflect well on the one just expressing view point as we can all do that. I have always said view points are penny a dozen. If you have constructive observation and one that shows the above idea is completely illogical then don't be shy share is here. Otherwise I think it is an attempt to fan one own ego and glory at the expense of others.
I think you will get the idea.
I personally see nothing wrong even though I don't necessarily trade relatively short term trades.
Really, without data at hand you simply cannot just turn up and start to call others idea as ridiculous and then ask others for burden of proof for your opinion. So may be you would should go to drawing yourself before being critical. That is all I am saying because others can do the same with your idea. What will that prove.
Anyway, I see you have strong opinion on the matter so I will leave it here. Thanks.
Furthermore, I would advise everyone who trades this pattern against the trend to look for .382 and .618 retracements as targets. When you trade with the trend I'd go for the .618 and 1.272 extension.
Like Jasper said, you can always post your own ideas or just ignore all trades against the trend :)
Price starts moving against the trend, sideways, then clear big bar against it, breaching the support and eventually hugging the opposite band. During that chop period you can ride the small legs just using oscillator divergence and price action.