![]() My stop is running beneath those lows there. See, what I would be inclined to do, is once price broke above this EMA and rejected this level, just put a stop underneath there, because you could always re-enter and you could have waited for price goes down, down and now enter here, which is what I’ve done, I entered here. Now, that wouldn’t necessarily have been wrong, because you hit the 38.2 Fib, but if you think about it, you would have had to have quite a large stop, wouldn’t you? So, ideally, you would put your stop underneath the A leg, but that’s a huge stop, isn’t it? Look, that’s 1.08 to 1.04, so that’s 400-500 point stop. Now, you may have got in here, at this level here, when price just broke above here, you see stochastics turned from the upside, you might have broken here. So, in this instance, what you can see is, that price went down to this area here and then, when the stochastics started turning to the upside, then we started to move in the direction that we wanted. And how do you know where the C to D leg is going to be? Is it the 38.2, is it the 50, or the 61.8 level? They are the three main levels that you want to be entering a trade on. You just go left to right, so you’ve got A-B leg, now you’re waiting for the B to C leg to finish and the way you would have worked this out is you would have seen the price went down here. So, first of all, when you see an A to B leg like you do here, you get a Fib retracement level. ![]() ![]() If you look in the market, you’ll see these everywhere. All I want to explain to you is simply how you go about at identifying these ABCD legs. Now, I’m not going to explain how I’m going to play this as it goes out, but that’s my ultimate target. So, you can see in this example here, I’ve identified the A to B leg of a move, then we have the B to C leg, and now I’m making a move up towards the D leg and my target’s there, which you can see is an extension of the A to B leg, and the C to D leg should be in equal length. So, the A to B leg, and then you identify a B to C leg, and then you identify that price should travel from C to D. Now, on the screen in front of you, I’m going to show you an example of a trade I’m actually in at the moment and the way ABCD trading works, it’s based upon Elliot Wave Theory, and you identify an A and B leg of a move. In this video, I’m going to show you how you can use these very simple swing patterns within the markets, in order to find excellent places to enter and to define and limit your risk, but also maximize your potential gains. Trading can be as simple as A, B, C and D. What is an ABCD chart pattern – a simple guide What is an ABCD chart pattern and how to trade itĭo you want to know more about chart patterns and how they work? Watch our latest video to find out what is an ABCD chart pattern and how to trade it.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |