TRADE: BUY@1.44185 SL@1.43090 TP1@1.49075 R:R 5.0 Risk: 110*4 Reward: 489*4 Trade Ranking: 3.5
Simplicity. That is the key to reading charts clearly and being able to see the next move. That is lost on many traders as I see charts with BB Bands, multiple MA's, 2-5 lagging indicators, studies, ATR readings, , etc all clouding the chart....and your vision! KISS principle. That is all you need. Take a look at this and see how clear it can be. It DOES NOT mean it is correct but when you can see this clearly, your chances of being correct increase greatly:
Once you see this, then what you can do is to start planning what you are going to do from there. I don't need to explain that chart to you as it is so simple, even a novice can understand it.
So now that you see what I see on the larger scale, now I show you how I come down to a lower TF and break down the trade. In the main chart above, you might look at that and think it not clear but that would be because I have placed 2 scenarios onto one chart.
First, although I have shown you the on the , I am operating under a more immediately scenario that would have prices moving higher without forming a contracting triangle. That scenario is in RED. I am seeing the wave (4) correction as being over with the wave (4) as having been a . In which case, the next move can only be a wave (5) up.
The other scenario, the one that follows the as in the is in BLUE. It's requires no explanation.
Why did I show you these 2 scenarios? For the very reason why this is a good trade, IMO . You see. BOTH scenarios are saying the same thing...BUY! Regardless if this is a completed flat wave (4) or a triangle wave (4) in progress, both would call for a BUY at this point. So I do what the chart says to do. It's as simple as that.
No trade is 100% guaranteed to be correct of course. So I place my stops where if prices were to go to my stops, then it is highly likely that something else is happening here and that my wave counts are off. Place your stops where if you are wrong, you learn something from the mistake. Never place stops according to what you can afford to lose. If you can't afford the stop where you SHOULD place it, then you can't afford the trade. Find another trade you can afford. But don't compromise the stops just so you can get in the trade. You can also see that the risk:reward ratio is high. Everyone has their own idea of what kind of R:R they want but for me, I don't take trades less than 1:2 R:R. My suggestion: NEVER take trades that are only 1:1 R:R! That is simply bad trading and bad MM!
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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It seems it failed (that can be, no problem), i wonder did you change stop loss and is it still active? or did you post this one as new? if this is new, i did not see it on the website.