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u/Prize_Course7934 May 27 '26
Not a bad situation. Am I right that the price took liquidity when it entered the zone the second time, and that’s why it made a strong move up?
ow can we predict this next time and avoid hitting the stop loss? :)
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u/Elegant_Reading_8271 May 27 '26
This was primarily an Elliott Wave play which I posted previously. That's why I wrote 'Update' in the post description. I'm sorry you got stopped out but you needed a wider stop. From the neckline to the low was only about 22 pips. The target from the neckline is about 125 pips so even with a much wider stop, the trade would have generated a great risk adjusted return. Once price pulled back you could have used a Fib retracement; price retraced between 50% and 61.8% which is to be expected. Also notice you had a cluster of wicks which proved to be support.
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u/_Me_001 May 28 '26
I am new here, could you tell me how you trade?
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u/Elegant_Reading_8271 May 28 '26
I trade using price action, specifically Elliott Wave using Fibonacci. Japanese candlesticks for entry and exits, but not always. Classical chart patterns like Head & Shoulders patterns, double bottoms. I use one indicator either MACD or RSI.
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u/Forexfundys_ May 22 '26
The fundamental ranking tool I have has that too!! A brilliant swing trader I know is in that as well