I didn't see my category in the poll... 5. Trade with the trend after reversing from the prior trend (none or very little consolidation in between). Yes Sometimes called Trend Reversal traders (don't get this confused with top and bottom pickers). NihabaAshi
This is the hard part. How do you know that your entry point is a true trend reversal or just a retracement (point 3 or C wave)? pretzel
pretzel, That's a very good question and there are ways to avoid trouble regardless if a trader is aware of waves or not. pretz...I'm not very knowledgable (I don't spend as much time with EW as I want to) of Elliott Wave stuff although I do understand basic concepts about it. Yet...that's what stop/loss protection is for...when I'm wrong. NihabaAshi
Put in its simplest terms, if you're shorting a lower high, you are more likely to be entering a reversal, particularly if the uptrendline has been broken or will be broken by your entry.
NihabAshi, Can you explain the difference between what you do Trend Reversal Traders and picking bottom or tops. Thanks,
That should be a good entry point, but I think what NihabaAshi had in mind is an earlier entry (right after turning down from the first high) . pretzel