HOW I TRADED IT
usually between 1.272% and 1.618% extensions.
But here is how i went with it after i met it later
usual ab=cd pattern but an extension here
usual 1.272% extension as XA leg
usual 78.6% or 88.6% retracement as AB leg for C
(note: BC could be any retracement between 38.2% - 88.6%)
usual 1.618% extension AB leg
then
CB extension 200%. this just confirm likely retracement for D
1.272% extension of CD leg of ab=cd patten also as confirmation of D retracement
any other extension of retracement within C to D leg not greater than 2.618%
now:
confirmation of entry are:
1. within 1.272% and 1.414% of XA extension
2. 1.618% extension of AB leg
3. not greater than 2.618% extension of BC leg
4. 1.272% extension of CD leg of ab=cd pattern
5. double or triple bottom with RSI divergence
here i also waited for a double or triple with RSI divergence bottom in a lower time frame for confirmation.
risk to ratio of 1:2.5
bam! got the cash handy. before NFP.
usually between 1.272% and 1.618% extensions.
But here is how i went with it after i met it later
usual ab=cd pattern but an extension here
usual 1.272% extension as XA leg
usual 78.6% or 88.6% retracement as AB leg for C
(note: BC could be any retracement between 38.2% - 88.6%)
usual 1.618% extension AB leg
then
CB extension 200%. this just confirm likely retracement for D
1.272% extension of CD leg of ab=cd patten also as confirmation of D retracement
any other extension of retracement within C to D leg not greater than 2.618%
now:
confirmation of entry are:
1. within 1.272% and 1.414% of XA extension
2. 1.618% extension of AB leg
3. not greater than 2.618% extension of BC leg
4. 1.272% extension of CD leg of ab=cd pattern
5. double or triple bottom with RSI divergence
here i also waited for a double or triple with RSI divergence bottom in a lower time frame for confirmation.
risk to ratio of 1:2.5
bam! got the cash handy. before NFP.
