Hi Lucrum,
Thanks for your comment. I didn't mean to force everyone to believe in what I expect in my chart. I just want to share my view, so you can have another view for your trading plan.
I use the Elliott Wave pattern to help my trading. It's has help me a lot. But, if it don't go the way we expected, we still have more risk control over it. Because we would have like a warning message that said "hey, this is not going to be the pattern you expected!".
And yes, I do have a stop loss. Before enter any trade, I will dig deeper into a 60 minutes and 15 minutes charts. Sometimes even dig deeper into a 5 minute chart.
So we would know what to expect. Usually for the Elliott wave pattern there will be either 3 waves or 5 waves move.
If it's a 3 waves then this mean it's in a corrective mode. The price won't move much. If we see a 5 waves move, then we know that it's a motive wave. The price can move much more. This is very useful when we look deeper in the sub-minute chart.
Let's take EURUSD for example,
This is the chart I used for my trade.
As you can see that I use 240 minutes chart to see the big picture. Then to see what is the next possibility, I dig deeper into 15 minutes chart.
Ok, look at the 15 minutes chart. See the wave i(yellow), can you see that there are 5 waves in that move?
Yes, there is 5 waves move from b(pink) to i(yellow).
If we only see this 15 minutes chart we may think that this could only be a small c wave and expected to see the down move. But, don't forget to look back into the 240 minutes chart! It's more likely to move up.
So that's why I expect this to be a wave i(yellow) as it have 5 waves move up.
So what to be expected after wave i(yellow)? The rule of Elliott Wave is that if it's a motive wave, there will always consist of 5 waves. So, I expect to see only a small retrace of this wave i(yellow) and to help me on this I set a Fibonacci retrace. The best Fibonacci that could hold for a support is about 61.8%. So that would be my stop loss level. If it goes under that level, there is less chance to climb up!
And as I said, it yelling "Hey, this is not your wave ii(yellow)!! as it move down too much!"
But in this case, that Fibonacci level can hold it. Then this could be a second wave (wave ii yellow). And expected to see the next third wave up, which is the longest wave among the five wave pattern.
To me, Elliott Wave is the best analysis to help you trade any market!
And yes, by combine it will other indicators like EMA, RSI, MACD, Trend line and Fibonacci.
You've to learn and practice, don't judge a book by its cover!
Happy trading! Cheers!
