EU entry was too late. exit was correct, (correct for your entry)tombacon89 wrote:I didn't take the nice run down trade earlier as I wasn't keen on the 5min chart.
I took the break of the 60 low on a 15min chart a bit later, this trade went on past 1% profit, my target was 2% at the BRN. I moved my stop to break even when price moved 1% in profit. Only to watch it reverse and take me out, but still nothing lost on that one.
My 2nd trade was a cable trade looking for the 5 wave correction short. took a full -1% on that...
From now on I am going to set targets at 1% and let the trade do it's thing. I am done for the day and probably the week now with other commitments. I may get a session in on friday morning. Good luck with the rest of the week!
In case of GU, what you thought was an abc correction up i.e. Principle 5 (explained in the Advanced Techniques in the Premium Section) turned out to be something else. most important thing here is to understand that we always have around 40 to 50% chance of getting a rent but rent must be smaller and don't forget there is always 60-50% chance of a winner and those we must let run so that they are, on average, bigger than rents.
Now if I missed the big move down, I would not have traded here. because I see it this way.
Markets moves begin some where, there is always a point zero somewhere, that actually is when a certain sequence of waves ,i.e. a trend of whatever degree finishes somewhere, there is a point zero. (not referring directly to Zero Line of AO, but most often than not it coincides with a fresh cross of zero line, but not the fresh cross after AO has peaked on the opposite side) point zero is when one sequence ends and you have a fresh start, a new W1 perhaps, (but doing this analysis is cumbersome for m1) so there is a point zero and this morning it was right before the explosives moves down.
Once that is over and you see ,"an extended" wave 3, chances are that wave 5 might be smaller than usual. But your attempt to draw Principle 5 was not bad, that actually was an attempt to catch the point zero. But after explosive strong moves, the rubber band principle applies . if markets move too fast too far they will snap back...
so your analysis was good, it just did not go that way, and what you thought was a 1-2 down for a 5th wave down, turned out to be a some sort of correction of up move, may be it was b down or perhaps a wave 2 of 3 up got your entry. whatever it was, you got out at the right spot. NEXT
