Introduction
Hello fellows Traders,
My trading strategy includes several techniques as Harmonic-trading, Elliott waves, Support & Resistance, Price-Action and so on...
I'm using a multi-time frame approach looking for entries at the lower TF and exits at higher TF, I like to focus on the trade at the beginning and then forget about it! I'm not happy with staying in front of the screen every time, only when I have to.
What I'm always trying to do is risking a tiny percentage of my Capital and get the maximum of money from it!
But in order to do that, managing the trade on the higher-time frame seems to me essential, it allows me to ride the trend without beeing stopped-out unnecessarily.
On the other hand, losing trades are part of the game, and all I can do is minimize them, never avoid them! So I try to consider every trade as a losing one, in order to get my money management habits in place.
The Monthly Chart
So my trade here concern the major pair EUR/GBP, who's being on a serious correction since 2009 after a massive rally from 2000, and is now approaching a potential critical support-level who's been present since 1993 (21 years!).
Focusing on the trend continuation and according to the Elliott waves theory, I'm anticipating a wave 5 with an Harmonic move, this emerging Butterfly pattern is showing me the target in case my scenario is confirmed.
The Weekly Chart
Looking for bullish patterns, I found this nice Bat with prices hanging around the PRZ, the stop-loss is not so obvious to place because this pattern can become a Alt-Bat if prices continue to drop, the B point is right on the 0.382 Fibonacci retracement.
The Daily Chart
On this time frame, I didn't find any pattern, except this Price-Action set-up called an "Inside Bar" where we can put some stop-orders (I will only put the buy order in my case).
The 4 Hour Chart
Still looking for buys, I found this beautiful bullish Crab pattern where price are, again, flirting with the PRZ, all I need to do now is putting my buy-stop order from the daily chart pattern, stop-loss set on the recent low.
Money Management
I will risk on this trade 0,5% of my Capital.
The Trade
Entry: 0,7833
Stop-Loss: 0,7777
Target: 0,9433
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Risk: 56 pips (0,5%)
Reward: 1600 pips (14,3%)
R/R ratio: 28,6
Don't forget that this analysis is only a "guess" like any other technical view! To prove me wrong, it only takes the others traders to not buying at a higher price, in this case, to make my trade profitable, so...Manage your risks!
Marco ESLAIT BRAND
From Trading an Edge
