How to Trade Reversals Like a Pro | CADJPY Wave 5 Entry

53
hey Traders,
This is a live example of reversal trading using completed bullish wave structure. Entry executed, currently +10 pips, targeting 113.36 38:1 risk: reward.
🌊 Wave Structure Analysis:
Pattern Identified: Completed Bullish Wave Structure
What This Gives Us:
When a wave structure completes, it provides absolute clarity. We know exactly what our options are—no guessing, no confusion.
Our Two Options:
Sell the reversal (what we did)
Do nothing (if conditions aren't perfect)
That's it. No ambiguity. No emotional decision-making.
💡 The Power of WavesOfSuccess:
This is what proper wave counting provides:
✅ Objectivity - Remove emotion, follow structure
✅ Clarity - Know exactly what to do (or not do)
✅ Flawless Execution - Enter at precise levels
Important Reality Check:
Having clarity doesn't mean we never lose. Losing is an essential part of trading. We teach traders to accept losses quickly and immediately move to the next opportunity. The edge plays out over time, not on every single trade.
📊 Trade Execution Breakdown:
Focus Area: Last leg of bullish wave structure [Wave 4 → Wave 5]
Entry Method:
Counted the internal bar structures within the major Wave 5 swing. Precise entry at the 2nd Higher High (HH) bar of the internal wave count.
Entry: 114.42
Stop Loss: 114.46 (4Pips)
Why This Level:
The 2nd HH bar of Wave 5's internal structure represents peak momentum—the final push before exhaustion. This is where reversals should begin.
⚠️ Advanced Execution Warning:
This is NOT for novice traders.
Requirements for this type of execution:
Flawless wave counting ability
No guessing on wave positions
Internal bar structure recognition
Precise entry timing
When you master this:
Trading becomes effortless. You're not predicting—you're reading structure and executing mechanically. All you need to control is risk through proper stop placement.
✅ Trade Outcome (So Far):
Status: Success - Risk-free position
What Happened:
Price broke below the internal Wave 4 structural bar within the Wave 5 swing. This created immediate downside momentum and allowed us to move the stop to break-even (risk-free).
Current Profit: +10 pips (and counting)
Current Risk: 0 pips (break-even stop)
👍 Boost if you want more reversal trade breakdowns
👤 Follow for advanced wave structure execution
💬 Can you count internal waves? Comment below

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.