As we know Elliott Waves Analysis states that all moves happen in at least 3 Waves A-B-C in which wave A is a 5 impulsive waves, wave B is a corrective wave (could be sideways, zigzag or a complex combination), wave C also is a 5 impulsive waves that could be C=A or C=1.231A or C=1.618A.
Trading wave C is the most rewarding trade because of its high probability and because it is fast compared to other waves.
We expect that wave B is done and now we are in wave (2) of C to the upside. Our stop loss is not based on Elliott Wave analysis because B could go to the same price where wave A started (B=A), but We believe that if wave B goes below 0.64285 then the probability that our Analysis is correct would be low and we don't advise to hold longs in that case. (Note: We combine both Elliott Wave Analysis and conventional technical analysis to make sure we stay on the right track)
The Risk/Reward ratio is 4.5:1 which is worth a shot.
We advise to secure few pips in profit after closing above 0.66695 (4-hour bars) and then keep moving stops below any swing lows on the 1-hour chart.
Happy Trading :)
Trading wave C is the most rewarding trade because of its high probability and because it is fast compared to other waves.
We expect that wave B is done and now we are in wave (2) of C to the upside. Our stop loss is not based on Elliott Wave analysis because B could go to the same price where wave A started (B=A), but We believe that if wave B goes below 0.64285 then the probability that our Analysis is correct would be low and we don't advise to hold longs in that case. (Note: We combine both Elliott Wave Analysis and conventional technical analysis to make sure we stay on the right track)
The Risk/Reward ratio is 4.5:1 which is worth a shot.
We advise to secure few pips in profit after closing above 0.66695 (4-hour bars) and then keep moving stops below any swing lows on the 1-hour chart.
Happy Trading :)
Trade active:
We are moving stops to 0.6512 because we suspect that the pair has finished a 12 12 and ready to move impulsively to the upside in a 3rd of a 3rd and any move below 0.6512 will neglect our bullish count and would indicate that NZD would continue to hit a new low.
