Scenario 1: Uptrend
Trade setup: play the correction 4, or wait for 4 to play out and then long the 5th.
Note: Failure to break the above the grey line invalidates this scenario
Scenario 2: symmetrical triangle
Note: The stop loss might hit several times, but that doesn't mean the direction is necessarily wrong, patiently wait for other confirmations before trying again the same position.
Trade safe, due diligence is advised!
- Wave 3 is in place and is very likely to end around the blue line.
- following will be wave 4 which at max, will retrace to the grey line.
- Wave 5 will play till the green line.
Trade setup: play the correction 4, or wait for 4 to play out and then long the 5th.
Note: Failure to break the above the grey line invalidates this scenario
Scenario 2: symmetrical triangle
- The market is consolidating in the form of a symmetrical(A-E, not labelled), since the situation is self defeating, the easy way to
- trade this move will be having 2 open positions(dual plan), one long and a short position.
- A good entry for a short is slightly below 2, this ensures there won't be premature entries and the stop loss will be slightly above 2, whereas the tp is the yellow box.
- For a long position, a good entry is above the grey line, a tight sl below the white line and a tp around the blue line.
Note: The stop loss might hit several times, but that doesn't mean the direction is necessarily wrong, patiently wait for other confirmations before trying again the same position.
Trade safe, due diligence is advised!