First we have the trade the wave strategy, in which I would buy at the current low, short at the next high and close at the following low. Personally, i don't have time to sit around and wait for those kinda of trades, I don't do this for a living, i' m just an enthusiast with a little bit of money in these trades. So that being said, if i had the time, i might consider this trade.
For me the trade that makes the most sense with my life style is to buy the , and ride the reversal, i only say this because i don't have the time to sit here and stop trades and place new ones, this will allow me to place the trade right now, and let it fulfill itself in due time.
The strength of this trade comes from the three wave series , most of the time these waves are very accurate, but the reversals can be a little tricky. I find it most often occurs that after the wave series is complete , the market will pull back into Y , re-test previous structure highs around Z and then proceed to pull back down into X.
In this particular case, the pull back down into X will provide us with a very nice starting at X and finishing at C on the corrective set. So i plan to place a buy at the point D of that , around 15.46531, because this will allow us the most room for profit , while keeping our risk as low as possible.
Usually I would wait for the market to pull back Into B, but since we are counting on the wave series, and there is a lot of in that area, i will keep it at D.
Now my stop is place at point X of the , because it is common for the market to break through that D point and test the lows of the pattern before actually rallying up to our target.
My Take Profit is all the way up at 15.62553, which is around the of the bat patterns BC leg. I always place my Limits at that extension , and i have had a lot of luck with it in the past and overall its profitable, so we keep it.
Well thank you for reading through my book , LOL, I hope that anyone who trades this with me ,lets me know and we can talk about it as it moves, in the mean time, like the post if you agree or comment if you have another opinion about this market or this trade.
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And Lastly Have an awesome Trading week , Good Trading Everyone!