Here we have USDJPY 4 hour chart showing us perfect examples of lower highs and lower lows indicating a market.
how do we determine when to enter a market is the hardest part for new traders.
Using the tool we are interested in the C leg of the A,B,C,D formation
A- swing high or low
B- swing high or low
C- is the retracement we look to enter on
D- is our predicted price target
this system is very easy and straight forward and also can be used to add positions and maximize on a move in the markets in the safest way buy added positions at each C retracment.
once a lower high has been made we can move our previous entry into profit protecting capital as we trail the move down.
Current market USDJPY im expecting another C leg to be formed as shown with the Stop Loss and Take Profit Indicator with projected target at D