When #ElliottWave Theory is used to find entry points into #tradesmokers , the most obvious signal is the formation of an impulse movement from the point at which the trend reverses.
If an uptrend is involved, the entry into the position is made in one of the three impulse waves.
âïž
It is best to wait until the first correction is complete after identifying the impulse wave, and then open a deal on the trend.
Two methods can be used in this case:
Conservative - an order to buy is opened after the correctional movement is completed, at the level of the end of the 5th wave. Through the beginning of the first and the end of the second wave a signal line is drawn, in case of return of the rate to which the transaction is closed. The repeated opening is made on the top of a new maximum after the correction of the signal line.
Moderate - the initial conditions for opening a deal are similar to the conservative method, but the buy order is placed at the level of the end of wave B. Further actions are similar - if necessary, the deal is closed, and the signal line is corrected.
Also, sometimes an aggressive method of entering a position is used, which consists in opening a deal after the signal line breakdown. It is believed that such an event indicates the beginning of the formation of a new impulse pattern.
