This is an Educational post regarding ' HOW TO TRADE WEDGE PATTERNS IN RIGHT WAY '
1. There should be a nice uptrend or downtrend before you start marking the pattern 2. join the most touches of body candle or wicks as per your trading style and what works for you 3. If a Fakeout has happened then most the chances of pattern to work increases 4. check the volume of recent price 5. always pay closer attention to price when price is near to the breakout 6. Always look for good body momentum candle breakout with good volume 7. aggressive traders can enter after the breakout 8. I always buy on the retest of the resistance level which became support or vice versa for short trade 9. Use your personal favorite indicator to add confluence to the trade
Do let me know if you learned anything from this post
I am new to Elliot Wave patterns and hoping for clarification on pricing. Are the top & bottom of the waves based on closing price, or candle wicks. Currently I’m looking at BABA, I believe that it is the bottom of wave 4 but, the wick is touching the top wick of wave 1.