Flats are my favorite corrective patterns
They are simple (3 waves) and at the same time more complex than a basic corrective structure - zigzag (that is, as you may know, only a part of a flat pattern).
In other words, the probability that the price will continue to trend after a zigzag (a basic corrective structure) is much-much lower, that after a flat.
On the chart you see an expanding flat. Wave C in a flat os a 5-wave move - an impulse, clear and easy to spot.
Basic and the most promising entry from RR perspective - is the break of w4 of wave C, with the shortest stop possible.
Another entry (sometimes - this is the place at add a second trade) - is the break of wave B of this structure.
Why so - just because this is the invalidating level for the impulse.
Good luck, try to spot these structures and your trading will bring much more confidence in what you are doing
PS. RR if you enter as the price breaks w4 - is usually not less than x3 (typically - x5)
They are simple (3 waves) and at the same time more complex than a basic corrective structure - zigzag (that is, as you may know, only a part of a flat pattern).
In other words, the probability that the price will continue to trend after a zigzag (a basic corrective structure) is much-much lower, that after a flat.
On the chart you see an expanding flat. Wave C in a flat os a 5-wave move - an impulse, clear and easy to spot.
Basic and the most promising entry from RR perspective - is the break of w4 of wave C, with the shortest stop possible.
Another entry (sometimes - this is the place at add a second trade) - is the break of wave B of this structure.
Why so - just because this is the invalidating level for the impulse.
Good luck, try to spot these structures and your trading will bring much more confidence in what you are doing
PS. RR if you enter as the price breaks w4 - is usually not less than x3 (typically - x5)