Step 1 A downtrend ends with Wave 5. Besides the end of the wave 5 in a downtrend, we also want to see the first indication of a trend reversal – an establishment of a new Higher High. Step 2 Once a new Forex indicator trend reversal analysis high is found, its the first opportunity to plan an early entry with a new trend. These levels will give an Entry zone area.
Step 3 Once a Buy order is open, place an initial Stop order below the beginning of the Wave 1. If price goes past Fibonacci levels resulting in a wrong trade, accept the Loss and at that point place a Sell order with a profit target set cover up the previous loss. 1 at the first resistance level, which is the top of Wave 1. 2 of the position at that point.
Why to take profits this early? 1 is reached, move the Stop order to break even. Those resistance levels if passed successfully, present an immediate opportunity to add 1 more Buy order to an existing trade. 3 is the strongest wave, so that’s a good opportunity to make more profits. At this point we want to close all remaining trades. Wave 3 was the strongest most profitable Wave.