From now on if I will spot any good trading setup that meets Elliott Wave requrements I will post it for free to You. The first forex pair to try will be EUR/USD. If there would be any other forex pair with good setup - I will post if as well.
The Trading Plan will include rationale behind the decision, entry level, stop loss and take profit levels. However, I will not provide the size of order as I will leave money managment aside for a moment because everyone has a different point of view on that matter and that would require another topic to be discussed and developed here.
The idea is that I want You guys to see how do I use EW principles in everyday trading.
Let's do it then, first trade:
Rationale: Fibo Time Cluster resistance has been met and it looks like wave 3 has finished the move up in nice five wave impulsive pattern. My longer term bias is to the upside as this impulsive movement up must develop all five waves before any meaning correction could take place. But for now I will try to catch wave a of wave 4 to the downside - my TP level is on the first Fibo Price Cluster, where wave a of 4 might find temporary bottom ( normally I do not trade a corrections, only impulsive waves 1, 3 and 5).
Short EUR/USD @ 1.2975
TP: 1.2922
SL: just above Friday high - 1.2992
Risk to Reward ratio: I'm risking 20 pips to gain 53 pips so it is 2:1 R/R
Seb
Source | Elliott Wave NYSE And Forex Blog | http://elliottfxtrader.blogspot.com/2012/11/eurusd-ew-trading-plan-idea.html
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