Short

# JXY Bullish and Bearish Potential

TVC:JXY   Japanese Yen Currency Index
57 views
57
Why trading and wave analysis are two different things. Wave analysis by itself is not a trading
methodology. It is simply an analysis of what could happen. In school we were taught that every
analyst has two counts: A bullish and a bearish , or a primary and a secondary count. And when an
analyst becoms a trader it offers tradeable patterns which can be exploited. The chart is a result
of this. Red is the primary count and green the secondary count. The tradeable pattern for the primary
count is the red ABCDE triangle. The entry would be a close below (D) red dotted line. The Wavy Tunnel
Exit would be a close above the filter or the 12 EMA (green). The entry long for the secondary
count would be a close above the ABC correction pattern (B) green dotted line. The exit would be the same
A close below the 12 EMA . This of course is if the patterns remain simple and do not morph into
more complex correction patterns. ( Why ever trade starts with a stop loss or point where we are wrong in our
analysis. This is where wave therory plays the best rule. Because it has very specific rules for
wave structure. : wave 2 can trade as low or high as wave one but not beyond it. wave 4 cannot
close into wave 1. wave 3 cannot be the shortest wave in a five wave structure. A corrction happns
within parallel lines.
And it offers us some guidlines for points of possible corrections. Such as: .681 is the most common wave 2 correction.
.382 is the most common wave 4 correction. Wave C of an ABC correction most commonly trades within
the previous wave 4. etc)
So where does this leave us as a trader. Develop specific trading rules. With entry, exit points
both profitable and not. Stick to these rules. Stick to these specific rules for a given number of trades
(ON A DEMO ACCOUNT I used 50 trades) to see if you have a trade plan that offers a win rate ratio that is acceptable
for you. And if you use wave analysis. Trade The Pattern Not The Count...Jeffery Kennedy
Hello i'm a wavy tunnel trader (at least in the learning ) i have noticed you aren't sharing anymore wavy tunnel charts why is that ?
dubaere
@dubaere, Welcome to the WT methodology. We will be sharing some WT set ups as they develop in the coming months.
RalphStPierre
@RalphStPierre, thanks if possible maybe we could trade together sometimes
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית