Market Structure is Key to drawing up any harmoic pattern. Your most important impulse leg is your a:b and c:d you need to make sure that these reciprocate one another. I knew trend reversal was inevitable because we had a trend break on H4 which means for a stronger trend correlation. So once D pattern completed I do candle stick analysis on a lower time frame so i can get better entries
meaning i look for dojis, evening stars ect.. then i set up my take profits, I usually go by market structure so in this case since were in a bullish movement im looking for resistant points in price, to follow a take profit but since i trade in nadex i usually give myself a day or two of completion of my analysis depending on what price points are relevant. But if you are a regular spot trader than i would set up my take profits to the next support or in this case resistant area which would mean your B leg would be your first take profit then C leg for me was the next take profit..
meaning i look for dojis, evening stars ect.. then i set up my take profits, I usually go by market structure so in this case since were in a bullish movement im looking for resistant points in price, to follow a take profit but since i trade in nadex i usually give myself a day or two of completion of my analysis depending on what price points are relevant. But if you are a regular spot trader than i would set up my take profits to the next support or in this case resistant area which would mean your B leg would be your first take profit then C leg for me was the next take profit..
Comment:
For Stop loss i figure the next support or resistant is the stop loss in this case since were in a bullish movement we are going to look for our next support which is at @87000