Hi Sive, I waited for retrace to 1.2850 like you suggested but it didn't reach and then fly up higher, we missed this trade, so how to improve our opportunity in the future ?
Hi Nicole,
To minimize trades skipping, it is very important to track crucial points of trading context. Let's pass through this situation together.
1. We've expected AB=CD retracement and reaching of K-support and pivot point. The point of "no return" for downward AB-CD pattern is C-top. If market will take it out before reaching D-point, then AB=CD treated as failed and opposite move is very probable. So, you could try to enter long when this has happened.
Probably you have missed this trade anyway, since move was really fast - but this is special case.
2. Second, pay attention to price action. In video we've said that 0.618 extension of AB=CD stands above swing low. Since we have 2 stop grabbers - they suggest taking out of the low. Hence, market should show retracement from 0.618 and then proceed by stop grabbers' signal lower. If market has not shown any retracement at 0.618 and moved lower taken out this low and only after that reversed to the upside - that is not quite common for price action, according to AB=CD. It looks more like W&R of previous lows.
3. Keep an eye on price action. On hourly chart you may see thrusting bar to the upside (by which market has closed the gap). This is absolutely not typical for action after hitting just 0.618 target of AB-CD. Besides, hourly trend has turned bullish by this action, so you could try to enter long at nearest 0.382 retracement right after this bar has been completed, since you have a lot of reasons for that.
Although this is some kind of rearview mirror, and I do not like to appy it, because real-time decision making is absolutely different tune. Some of this observations could work in different situations some could not. Still, since we are speaking about particular example, I've tried to find some clues that could help you to make a right decision.
In general, when you monitor your trading plan realization by market - pay close attention to irrational moments that contradict to normal price action according to your trading plan. If there will not happen any - then your trading plan will be accomplished at 100%.