A few days ago I wrote a post about the labeling of WXY and ABC correction, today analysis is a correction pattern I hope you will understand how to trade it and be profitable. Some Elliot wavers advice not to trade correction waves since they can be complex, full of surprises and they are not easy for new traders to trade but once you gain experience it becomes a piece of cake. Lucky for you guys you have me the master himself. So I’ll take you to step by step on this trade, what a better way than to make money while you learn. EUR/GBP is a volatile currency pair so when you get the right direction it will move very fast and you will be in big profits very quickly. I have to mention that if it goes against you, it does the same very fast but lucky for you again is that you went through my free course so you use stop loss. Stop losses are your savior when the markets start doing crazy things. Some of us learned the hard way that route that why I’m emphasizing on this matter, I once had good profits when I was trading without the stop, I didn’t understand why everyone talked about them all the time, but it took one day and my whole account was gone. I remember it was a Japanese yen news that wiped me clean, I couldn’t believe it when I checked my account to find it on negative. Like what happened since when I left it I was in profit in all trades. So managing your risk is important guys. Before I get out of hand with mentoring let look at the chart below of EUR/GBP.
On the bigger time frame, we are in a corrective wave, that why it moving sideways like that, please note that it tricky to trade a pair like this but with experience it doable. So on the diagram, I included two arrow signaling option 1 and option 2, option 1 is the blue arrows, which mean that we are already on the wave (y) of the (Y) leg in the longer time frame. Option two is that we are going to complete the bullish leg (x) first then the bears will kick in to pull the price downward. If you are not sure about WXY counting you can check my other post on WXY, ABC counting. In both scenarios, we are looking at bearish EUR/GBP for the next week or so. Good luck guys trade well don’t forget Rome was not built in one day. Always follow good money management practices.
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