FX:EURUSD Euro Fx/U.S. Dollar
Hey Traders! I wanted to publish an example of using EW theory to set a tight SL and maximize risk/reward. Here we have a potential correction off of a strong impulse. There are a few possible scenarios lining up for the corrective structure that follows. Our preferred scenario in this case is if the last leg is in fact a b wave and the "c" will continue to complete the correction before continuing downward. If this is the case, a great TP level would be the completion and thus a stop below b will get us out quickly. Of course, with all predictive analysis, this could continue past our stop and complete wave ii which we will then re-analyze. The idea here is utilize the edge of R/R and size your trades accordingly.