If you fail, try and try again! In the previous LONG trade I posted, I took a loss because well, I jumped in too soon! It was a good looking setup but timing was off. So took a -19 pip hit. Yeah, it's a small loss but a loss is a loss.
Anyway, I'm taking another stab at it but this time, I've got PA on my side. Prices had dropped down below the previous minor structure that I had based my previous trade on. It hit the .382 retrace level as I thought it might and then quickly jumped back over that structure. Prices then continued up and hit the .382 level retrace of the previous leg down and now has dropped back down again to retest the .382 level below. Where I am now buying. This is price action as long as prices do not now drop even lower. Prices now must hold above the low that touched the lower .382 level in order for this trade to work. If it does, then according to my wave count, the next move up should be a wave 3. This is what I'm trying to catch here.
With the recent price action, there is a POTENTIAL bat forming although at this moment, the C point is still not set yet. The completion of the bat could mark the end of the wave 3. Yes, that would mean that I am expecting a move higher still. But deal with that when the time comes. The bat completion also coincides with a descending TL that has formed.
MY TRADE PLAN
Stops will go below the recent low that stopped at the .382 level below. If prices were to drop below there, then my wave count will be invalidated and the trade would be closed. Yes, some might question about the wisdom of keeping such a tight SL but keep in mind that the reason for the trade is the wave count and trying to catch a possible wave 3 (if my count is correct). So if prices stop me out, I know my count was wrong and no reason to stay in. My TP1 will be at the completion of the bat. I'll examine the price action then to see how much profit to take off the table.
For those that do wonder about such tight SL, isn't that the purpose of wave counting is for? To find the most optimal price points to get into a trade with the least risk possible? This is also where PA comes in so handy as well. Even further tightening that SL and reducing risk. After all, managing risk is half the battle.
Actually, I think that if you have a large SL, then you have NOT done a good enough job of analyzing and figuring out where the best entry is.
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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"Luck = hard work + preparation" I don't believe in dumb luck. I don't just "luck" into good trades.
BTW, please don't take my words out of context. I'm not challenging what you said just as I'm sure you weren't challenging the wisdom of my trade (were you?). :-)
You post very good trades and good trade plans, I respect and appreciate that. I trade very similar style ;) -20 to +128 pips is very good ratio, that is rare setup. T.y. for posting it before it is too late.
And yes, I dont trade depending just on 'luck'. This is just simply luck this one time, that new supports this setup. That dont happen every time.