Impulse Wave | Correction Wave (2) Low | Trade IdeaWe might have an impulse wave forming here, where waves (1) and (2) have been completed. Wave (2) correction has bounced off the "golden pocket" fib retracement, where a long position is entered.
Strategy: Buy the correction wave (2) low, and ride wave (3) to about a 1:1 fib extension of wave (1). Once target has been met, a trailing stop loss may allow larger gains. This trade idea is cancelled if the price corrects below wave (1)'s low.
Long position details:
Time-frame - 10 hours to several days
Risk/reward ratio - around 4
Entry - Watch for reversal near the 0.65 fib retracement (in yellow) or lower while using laddered buys
Stop loss - below longterm uptrend, below 0.786 fib retracement or lower when using laddered buys
Target 1 - 100% Fib Extension (conservative)
Target 2 - 168% Fib Extension (aggressive) or implement a trailing stop loss after the first Target has been reached
This is simply a trading idea and not actual financial advice. Remember to trade safe!
