Post by zzamand56 on Mar 12, 2024 8:57:47 GMT
If you want to be sure, the target can be placed in the range of 38.2% and 50% of the first wave length. in this case. A stop-loss, in case of incorrect interpretation, will be set slightly higher than the upper apex of the first wave. If you can, you should switch to a shorter time frame and define the type of correction during the wave development. We will define the reversal point by analyzing the structure of the last corrective wave and the five bullet signals. LiteFinance: Mixing Williams and Prechter systems in a trading strategy (part 1) | Litefinance The chart shows the second wave which, upon closer examination, has a five-wave structure.
The blue circle highlights the expected point of its end, the green arrow marks the relevant profit-taking zone (50–61.8% of the length of the first wave). As you can see, the last candle has only slightly surpassed the 0.618 level. Let's see what the indicators show. LiteFinance: Mixing Williams and Prechter systems in a trading strategy (part 1) | Litefinance There is a descending fractal at the expected Belize Mobile Number List end point of the second wave. Two of the three most recent bars of the Market Facilitation Index indicator are squat, the classic MFI has a convergence (pink lines). However, the MACD is showing no signs of reversal. In rare cases, when the last candle is in the target zone and the other indicators are activated, this is allowed. Williams recommends dividing the acceptable deposit into 10 conditional parts, where one part represents the volume of an open position.
We open another position while the second wave develops. At the end of the wave, according to the analysis of the previous chart, we exit it by taking profit. Third wave At the beginning of the third wave, we are quite sure that there is a five-wave sequence formation, the first and second waves correspond to the structure and proportions described in the theories of Williams and Prechter. Therefore, now we can open three operations, which will be 30% of the deposit. In addition, the third wave in most cases is the most powerful and allows you to get a fairly good profit, even if you enter it a little later than your starting point. The next step after opening the position is to protect it from excessive losses and set a target profit. Set the stop loss level and reversal point to enter a short position slightly below the zero point.