Elliot Wave
This chart is showed 3 consecutive wave degree is pointing uptrend and it carry significant bullish implication.
- In minor wave degree, this pattern been defined as a TREND pattern, in which wave 3 is extended and it is most probable Trend Pattern to occur, very often wave 1 is equal to wave 5 in time and price, Med term investors were eyeing on it, price projection for wave 3 is $0.505/$0.625
- In minute wave degree is same as above which is extended wave 3,Position traders were in the ride, the price projection are $0.430/$0.485/$0.580
- In Minuette wave degree, wave 2 correction ended, wave 3 uptrend was kick in with big white candle today, once the price breakaway from $0.395, it will form another wave 3 uptrend, it is carry very bullish implication, because have 3 consecutive wave 3 is pointing to uptrend, the target for futures traders is/$0.450/$ 0.520
I anticipate it will break above immediate resistance at 0.395 and heading to $0.425/$0.435. Most likely it will breakaway from 0.435 and move to next target $0.450/$0.485/$0.500, I will cut loss if prices go below $ 0.340
Immediate support is $0.360/$0.340.
Trade Plan
Below is the trade plan according to Elliott wave theory and it applied to various type of traders/investors.Med Term investor Plan
Action : buy, 3 wave degrees uptrend
Type signal : RETRACE, aggressive
Applies to : Med Term investor(Minor)
Conservative Target : 0.505
2nd Target : 0.625
Exit Alert : 0.340
Position Traders trade Plan
Action : buy, 2 wave degrees uptrend
Type signal : BREAK OUT, conservative
Applies to : Long Term Investor(Minute)
Conservative Target : 0.485
2nd Target : 0.580
Exit Alert : 0.340
Future Traders Trade Plan
Action : buy, wave degrees correction ended
Type signal : RETRACE, aggressive
Applies to : Future traders(Minutte)
Conservative Target : 0.450
2nd Target : 0.520.
Exit Alert : 0.340
Resistance
1. $0.425
2. $0.435
Trading Challenge
Many people committed to buy stock is very easy, when come to profit taking and cut loss is one of the most difficult part in trading world, talking about profit taking is dealing with greed and stop loss is dealing with fear, cutting loss is a must in trading world because it stopping my capital continue to loss, in order to stay alive in trading world... it is a must !!! it is not an option, else I suggest you get out of the trading and you are not suitable.
I wanted to used simple example to share on the cut loss ... you bought an egg and prepare to used it for fry rice, some how you notice/suspect the eggs you pick was/may turn bad.... the question now is shall out throw/scrap the bad one and pick another .... or nevermind bet or hope the suspicious "bad" egg will be good and risk the good rice which is ready to cook ? you make the call... I am believed in order to win I got to know how to prevent I am loss in the market... if I notice I am wrong... I got to admit and cut the loss and make a next move.
As a reminder for myself
I am always remind myself If the trend is go again me and violated my SL limit, I will cut loss base on the risk preference.
Stop Loss is painful process because I making loss, but it is necessary to take it, it is very important because it protect my capital to ensure I am stay in the market.
DISCLAIMER:
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