Here i have identified a new pattern to me, these are called wolfe waves, they are rather simple to understand , and supposedly more accurate than elliot waves. so i tested one yesterday on the Aud/Usd charts, and sure enough i made a serious return , so now we will publish one , and it will probably fail just my luck.
So i have placed my entry right around point 4 of the wave series to maximize profits and limit my loss if the market decides to turn and run for the butterfly pattern.
I have placed my stop at point 2 which is previous structure. if the market rallies to break that structure, i can pretty much bet it is going up to the next structure point to complete my butterfly pattern , but it doesnt seem likely with the market in this bearish momentum.
I have placed my limit at some structure from the middle of last week where the market had reached some lows, i will be betting that the market rallies off those lows in the near future. Thanks for checking out my idea, please leave some comments and or like this post if you agree, if you disagree , please leave a comment so we can both learn a little about this particular wave pattern.
And always follow me for updates and ideas in the future. Thanks again guys and as always Good Trading everyone!
i put it at .93813 just because its a 2:1 risk reward ratio , and it gives me some room in case the market doesn't make it all the way down into that previous low, but you could potentially go to about .93647 but being that there is no recent support lower than that , i am not going to play it safe and stop there