For this idea, there are 2 things to take note:
1. I believe the breakout to the upside to be a false breakout. Thus price should fall back into the channel.
2. The "C" wave is slightly shorter than "A" wave, but it shouldn't matter since corrective wave does not conform to the "3rd wave cannot be the shortest" rule.
If you are an active trader, you can choose to place your stop where I indicated. But if you are really more swing trader and can take wider swings, then I recommend putting stop above where the Fibonacci shows 1.
Good luck!
1. I believe the breakout to the upside to be a false breakout. Thus price should fall back into the channel.
2. The "C" wave is slightly shorter than "A" wave, but it shouldn't matter since corrective wave does not conform to the "3rd wave cannot be the shortest" rule.
If you are an active trader, you can choose to place your stop where I indicated. But if you are really more swing trader and can take wider swings, then I recommend putting stop above where the Fibonacci shows 1.
Good luck!
Trade closed: stop reached
Note
Remember to adjust your stop when market goes in your favour.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.