OK, on the 3min Chart, we got a lovely 3min DP sell setup. As we have seen, we were already anticipating a decline on the 15min Chart, so this was a good 3min sell to consider.
Now comes the important part................. The markets actually declined a lot faster and sharper than a 15min Wave (4) correction would expect............... Sop in “traditional Elliott Wave terms”, the pattern had gone wrong.............. BUT (and this is the really important part). Do we care ? Well, no, because we have a short trade that is now running further and as such making more money than anticipated......
This is so important, and why the Isolation approach to Elliott Wave actually works far better in the “real world” because Elliott Wave patterns fails so many time, BUT when they are obvious, they do give brilliant “trade entries”. And this is the important difference, in that we use the pattern for the trade entry only and then manage accordingly, and do not worry about any “forecasts” !
The result, a lovely +6.8R Profit (ignoring slippage and commission) as a DP comes in
Thanks, Steve
Now comes the important part................. The markets actually declined a lot faster and sharper than a 15min Wave (4) correction would expect............... Sop in “traditional Elliott Wave terms”, the pattern had gone wrong.............. BUT (and this is the really important part). Do we care ? Well, no, because we have a short trade that is now running further and as such making more money than anticipated......
This is so important, and why the Isolation approach to Elliott Wave actually works far better in the “real world” because Elliott Wave patterns fails so many time, BUT when they are obvious, they do give brilliant “trade entries”. And this is the important difference, in that we use the pattern for the trade entry only and then manage accordingly, and do not worry about any “forecasts” !
The result, a lovely +6.8R Profit (ignoring slippage and commission) as a DP comes in
Thanks, Steve
Posts
