Wave-Trader

Trading Strategies on Corrective Patterns

FX:EURUSD   Euro Fx/U.S. Dollar
5632 65 175
6 months ago
There are two trading strategies on above Mentioned corrective patterns.

1. Entry before breakout, this strategy based on bullish divergence and RSI and other Oscillators may help to know when correction period is about to end. Look always for oversold

2. Entry after breakout, this strategy simply based on breakout of corrective pattern

3. Stop Loss, stop loss will be behind the corrective pattern for both

4. Target , target is start of the next correction

Entry before breakout, is called risk taking entry rather than the entry after breakout because tight stop loss is used for entry before breakout but risk reward ratio is good rather than entry after breakout.

Entry after breakout, is called risk averse entry rather than the entry before breakout because wider stop loss is used for entry after breakout and breakout confirms trend continuation. This is the reason why most traders trade on breakout but risk reward ratio is not good enough rather than entry before breakout.
6 months ago
Comment: Stay one step ahead from the market, Look at the examples.
6 months ago
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6 months ago
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6 months ago
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6 months ago
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6 months ago
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6 months ago
Comment: entry before breakout with the help of RSI best example.
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6 months ago
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Here is the entry point for risk taking entry
6 months ago
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why it is risk taking entry
6 months ago
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we can see entry point and stop loss point inthis example. why this is risk averse entry because price has confirmed breakout and why we use same stop loss for this trade setup is because in case price do not continue trend and reverse back in correction then we may close our trade as much close as our entry point for money management but in risk taking entry we hope for the breakout and keep open our trade for breakout and do not have enough time for money management until we got hit our stop loss. hope this will help
5 months ago
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Trend continuation pattern formation and risk taking entry with the help of RSI.
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pitouking PRO
6 months ago
great, but don't you use fibs for target ? because next correction might reverse a lot before you know you're correcting
+1 Reply
Wave-Trader TOP pitouking
6 months ago
No, i don't use fibs and you are right mate it may reverse but important thing is that where correction is forming. For-example if it is forming a longer term downtrend line then its performance may affect mate.
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swing-trader
6 months ago
Thanks wave trader V nice post
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Wave-Trader TOP swing-trader
6 months ago
my pleasure mate thanks for your support
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bdpatel99
6 months ago
The best educational post I have ever seen on tradingview.com

Thanks.
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Wave-Trader TOP bdpatel99
6 months ago
you are most welcome my friend.
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SwissPips PRO
6 months ago
Excellent! Keep up the good work
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Wave-Trader TOP SwissPips
6 months ago
thanks for your support
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Simon_mich PRO
6 months ago
Superb. Thank you so much for your great posts
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Wave-Trader TOP Simon_mich
6 months ago
my pleasure mate and thank you very much for your support
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arshadd Wave-Trader
6 months ago
respected brother how to recognize 1ist wave.. some education on this as well please..
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Wave-Trader TOP arshadd
6 months ago
it is easy mate not a big problem. for that you need to know reversal patterns first. if you can identify them then most probably you can recognize 1st wave easily.
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arshadd Wave-Trader
6 months ago
thank you brother
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forexmech
6 months ago
Excellent post. Thank you for taking out time and uploading this
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Wave-Trader TOP forexmech
6 months ago
my pleasure mate and thank you very much for your support
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immawin
6 months ago
what does stoploss behind the correction mean?
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immawin immawin
6 months ago
also what oscilator do u use and how?
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Wave-Trader TOP immawin
6 months ago
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hope this will help you mate
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ForexTrade
6 months ago
Thank you for the great job.
+1 Reply
Wave-Trader TOP ForexTrade
6 months ago
you welcome mate
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ahmed.barakat1
6 months ago
nice post and thanks for sharing I use this method. but I have problem with counting can you tell if my counting is right ?
is this counting right
+1 Reply
Wave-Trader TOP ahmed.barakat1
6 months ago
if you give a same chart to 10 traders they will count and name them differently mate. Counting may not be same of all traders mate counting and naming does not matter mate. the very important thing is identification of impulse and correction and if you are good in identification then you dont need to name on them you will mostly be into the right direction.
+2 Reply
ahmed.barakat1 Wave-Trader
6 months ago
thanks for your answer as I think you are right and you were helpful. I know that it is different but all what I know that if you have a regular divergence you are on wave 5 . either the 5th wave in wave 3 or the wave 5 its self. Also identifying impulsive is not easy even if you see my published ideas you will find me right most of the time . the question is . is there any sign confirm impulsive or correction from an indicator such MACD or RSI and when ? I am looking for an answer to match my thought and give me confidant
+1 Reply
JaimePantoja
6 months ago
Hi, thank you very much for the educational post, very useful ... I have one question regarding to how to play the break out, do you take the long (in a bullish scenario) when the Break Out bar closes or when the price breaks the trend line ... here is an image
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... thanks in advance for your answer :)
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Wave-Trader TOP JaimePantoja
6 months ago
it depends on momentum always look for trend strength when price trying to break a pattern. if it seems to you that trend is very strong and building momentum then you can enter before candle close. for momentum you can analyse chart on lower time frame.hope this will help mate.
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JaimePantoja Wave-Trader
6 months ago
Ok got it. thank you :)
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Wave-Trader TOP JaimePantoja
6 months ago
my pleasure mate.
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Delilasdad PRO
6 months ago
cool very nicely explained
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Wave-Trader TOP Delilasdad
6 months ago
thanks my friend
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RationalTrader
6 months ago
Great posts Mr! I'm a wave trader myself. Do you use geomtrics for setting your TPs as well?
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RationalTrader RationalTrader
6 months ago
sorry I just saw you had written about TPs and SLs in your chart. You wait for next corrective structure for TP-s I understand:) I'm using mostly fibs myself, as well as major trend. Qucikest scenario would perhaps be break of upper/lower bollinger band and a reverse candlestick with confirmation as well.
+1 Reply
Wave-Trader TOP RationalTrader
6 months ago
basically i believe on structure. structure tells me about my profit target, for example from channel trend line to channel trend line
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arshadd
6 months ago
wave trader thanks a lot .. very logical , very educational ... very less people gives their trading plan.. you the great one.. thanks again. on the other hand anilmangal is very outstanding wave trader but he don't tell how to recognize the pattern...
dear wave trader let us know your name as well..
+1 Reply
Wave-Trader TOP arshadd
6 months ago
you are welcome mate and thanks mate for your support, whatever name you can choose for me i dont mind.
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Wave-Trader TOP EasyMoney
6 months ago
i would be very happy if you will let us know about your guessing sir.
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EasyMoney Wave-Trader
6 months ago
I do endogenous and exogenous studies and then use technical analysis for timing.. this just looks like you drew some lines for an idea?
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Wave-Trader TOP EasyMoney
6 months ago
yup these are just lines nothing else, by the way thanks for your time
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EasyMoney Wave-Trader
6 months ago
Welcome!
+1 Reply
Kareem EasyMoney
6 months ago
If wanting to trade the breakout and wanting to place stops below the pattern how do you decide how many pips below to put a stop loss?
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Wave-Trader TOP Kareem
6 months ago
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here is the entry point for risk taking entry
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Wave-Trader TOP Wave-Trader
6 months ago
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and you can see in this example why it is risk taking entry
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Wave-Trader TOP Wave-Trader
6 months ago
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you can see entry point and stop loss point inthis example. why this is risk averse entry because price has confirmed breakout and why we use same stop loss for this trade setup is because in case price do not continue trend and reverse back in correction then we may close our trade as much close as our entry point for money management but in risk taking entry you hope for the breakout and keep open your trade for breakout and do not have enough time for money management until you got hit your stop loss. hope this will help mate.
+1 Reply
mrleedz
6 months ago
Thanks man your work is much appreciated
+1 Reply
Wave-Trader TOP mrleedz
6 months ago
you are most welcome mate and thank you very much for your feedback
+1 Reply
arshadd Wave-Trader
6 months ago
Me wave trader, which can you suggest me some educational material of " how to make a strategy using wave structure" ? please
+1 Reply
arshadd arshadd
6 months ago
any stretgy book or vedios?
+1 Reply
MarkussJansons
6 months ago
Can this be used with bears?
+1 Reply
Wave-Trader TOP MarkussJansons
6 months ago
yes
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Chriswhite
6 months ago
Thanks a lot mate,it helped 100% trust me. Keep up the good work mate,I love your education.
+1 Reply
Wave-Trader TOP Chriswhite
6 months ago
my pleasure mate
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1122kashif
6 months ago
Tell me it pattern can aply h4 or D1
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Wave-Trader TOP 1122kashif
6 months ago
yes even these patterns form on 1 minute charts as well mate
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Wave-Trader TOP 1122kashif
6 months ago
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here is the 1 minute chart mate
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MarkussJansons
6 months ago
Im a little confused where to set my target/ take profit how do i find the next correction?
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Wave-Trader TOP MarkussJansons
6 months ago
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do you see this picture mate there were two patterns back to back
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MarkussJansons Wave-Trader
6 months ago
OKay thank you very much
+1 Reply
Wave-Trader TOP MarkussJansons
6 months ago
my pleasure mate
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DelorenFX
6 months ago
Thanks for posting clear educational charts, very helpful .
+1 Reply
Wave-Trader TOP DelorenFX
6 months ago
you are most welcome my friend thank you very much for your feedback
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dino7d
5 months ago
Very good Sir, Please guide me too! I always see your chart and try to learn it.
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Wave-Trader TOP dino7d
5 months ago
pm me
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Thank you Wave-Trader. For all your effort which you put into this.
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whatistheplan
5 months ago
awesome
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nick007
4 months ago
fantastic sir nice educational stuf
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itahirmasood
3 months ago
good
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