So here in hindsight is another example. Again on the Dax. If you missed the earlier 123 from the last possible place before breaching the previous sig LH (as per earlier chart), here is the wait for the retrace option;
First we get an abc retrace which breaks the sequence by printing a minor HH (purple), then it makes a fresh low back into sequence. Yes, it could be sold there, but i prefer to trade 123's. It obliges by printing such, but instead of going short upon valid trigger (as usual in red), by waiting, we can slew the R:R ratio massively in our favour and look to get short at 50% (or minimum 61.8%) of the original risk, (blue entry). Look at how attractive the reward becomes suddenly, with stop a pip above point 3.
Yes, you will miss several trades during the day and watch profit disappear without you getting onboard, but you really only need this to work out a net win of twice a day, to return 4 times your predetermined original risk...
First we get an abc retrace which breaks the sequence by printing a minor HH (purple), then it makes a fresh low back into sequence. Yes, it could be sold there, but i prefer to trade 123's. It obliges by printing such, but instead of going short upon valid trigger (as usual in red), by waiting, we can slew the R:R ratio massively in our favour and look to get short at 50% (or minimum 61.8%) of the original risk, (blue entry). Look at how attractive the reward becomes suddenly, with stop a pip above point 3.
Yes, you will miss several trades during the day and watch profit disappear without you getting onboard, but you really only need this to work out a net win of twice a day, to return 4 times your predetermined original risk...
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