The most correct entry will be on the update of the top of wave “1”. In general, this is a conservative entry. Those who work on waves know that it is better not to trade corrections. But impulses are another matter! There are exceptions, for example, to trade triangles or planes. Therefore, the answer is as follows: 1) Risky - market entry. SL outside 36616. 2) Less risky - pending order at the expected end of correction 37914, SL outside 36616. 3) Conservative - pending order at 38600 update, but this is provided that wave “2” has already formed. Forecasting is always easier than trading, I think you know it better than me).
Appreciate the reply. What criteria has to be met to determine if wave 2 has already formed? I ask this because it seems that it is hard to know whether a wave has formed until after price has moved. I read somewhere that wave 3 is the wave to trade but until you are sure that wave 2 has formed how do you plan your entry to wave 3
(UPDATE) DJI (4H): Long to the resistance area 39156.49. ➡️Colleagues, in the coming trading week I expect the uptrend to continue and update the local high of 38558. I assume that wave “3” has started its development.
SPX500 (4H): Long to 100% Fibo lvl 5209. ➡️Colleagues, in the coming trading week I expect the uptrend to continue after the formation of corrective wave “2”, which I expect in the area of 50% Fibonacci level 5025. After that I expect the beginning of the formation of wave “3”, with the aim to reach 100% of the Fibonacci extension level 5209.
Oil (4H): Long to resistance area of 87.47. ➡️Colleagues, there is a great possibility of a price reversal in the coming week to give us a chance to go long again. In this regard, I recommend closing some of the open positions at the beginning of the trading week.
(UPDATE) EUR/USD (4H): Long to resistance area of 1.07923. ➡️Colleagues, in the coming week I expect the upward movement in wave “3” to continue. I assume that the level of 1.06741 will not be updated. (UPDATE) GOLD (4H): Long to resistance area of 2358.71. ➡️Dear colleagues, I believe that in the coming week the price will confidently come to the target of 2358.71. The idea is relevant. Perhaps there will be a small correction, but all my thoughts are only about long positions.
But if price doesn't move higher than wave 1 then all bets are off, because wave 2 wasn't confirmed? Is that correct?
(UPDATE) DJI (4H): Long to the resistance area 39156.49. ➡️Dear Colleagues, perhaps the price will update the low of 37771 and it will be an updated wave 2. This means that we have an opportunity to enter a long position again. (UPDATE) 5️⃣ SPX500 (4H): Long to 100% Fibo lvl 5209. ➡️Dear colleagues, it is possible that the price will update the low of 5012 and it will be an updated wave 2. This means that we have an opportunity to enter a long position again. So far, the price is within the forecast. #Oil Oil (4H): Long to resistance area of 84.42. ➡️Dear Colleagues, Wave “4” traveled a greater distance than I had anticipated. At the moment I expect a small update of the 78.80 low and the beginning of the upward movement with the aim to reach the resistance area of 84.42. (UPDATE) EUR/USD (4H): Long to resistance area of 1.07923. ➡️Dear colleagues, the price touched the support area at 1.06595 and at the moment I still expect the upward movement to continue towards the target of 1.07923. (UPDATE) GOLD (4H): Long to resistance area of 2358.71. ➡️Dear colleagues, the price has again touched the support area at 2281.896. At the moment I expect the upward movement to continue. I recommend to set trade to breakeven. (Breakeven=Risk Free: Move Stop loss to the entry level).