Action: Set limit sell orders between $10375 and $10256 Stop Loss: $10635 Take Profit: $10077.4 Order valid: 16 hours from publication
Profit target depends on where wave 4 ends, but a double bottom should be at least achieved.
The stop loss needs to be set slightly past the low of wave 1 (in blue) as a move above this level will invalidate the count.
The risk to reward ratio is not great, so best to reduce position size on this trade and maybe add more if resistance is shown at the 0.382 and 0.236 retracement of wave 3 (in blue).
Disclaimer: This material should not be the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions, and is not related to the provision of advisory services regarding investment, tax, legal, financial, accounting, consulting or any other related services, nor is a recommendation being provided to buy, sell or purchase any good or product.
@Oko32, If you have a high enough win rate, then you can afford to take these kinds of trades. Also, it's best to use less capital than you normally do on trades with not a great risk to reward ratio.
Oko32
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@TradewithLu, yeh i get that, it does go against everything i have read\heard about professional traders though, generally they seem to have 30-40% win rate, but they cut their losses short and let their winners run.
TradewithLu
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@Oko32, I agree with you, most traders should not take this. I have found that if you give your stop loss more room, your win rate can increase (just some food for thought)