Hey Traders! EURGBP has bounced at the "preferred" reversal level, meaning the AB=CDzig-zag completion. Limit is set at the previous wave-iv support on a lower TF with stop tightly placed below base of wave-i. If stop is hit, we have to re-evaluate the wave count and look for an even deeper correction. TP is placed at the top of previous wave-iii for a conservative TP. Happy Trading
Trade closed: stop reached:
This is a 3.5 pip stop-out. I will be waiting for wave-v to complete now and look for shorts rather than chasing the trade and placing a wide stop. Good Luck!
Always better to be process-driven than result-driven. The wave count seems to be playing out nicely. Also, the EURCAD trade made up for many more pips than were risked on the EURGBP trade. Thanks Mimi
No expectations, just probability and risk management! Usage of tight stops are typically low-win-percentage trades. If your R/R is 10:1, you can technically win 1 out of 10 trades and break even assuming your risk of capital is consistent. The study of risk management in trading cannot be stressed enough. Thanks for your comment Pyro