A System that can't Lose...

[wrtm_19]

Originally Posted by mich

Well as it happened (see the attached chart) EUR/USD daily broke through the 61.8% fib before retreating back.

I think we are now seeing the corrective Wave C which in so far as the theory goes is the longest of the corrective waves and it overlaps with corrective wave A.

I am not sure whether I am into all those Fib ratios. I believe they may convolute things. My view is that the role of the indicator (in this case RSI) is very important as it clearly shows the projected expectation.

Bottom line is that if the object of the excercise is collecting pips then I am happy with the wave itself (dominant and corrective) plus RSI.

What makes this method so useful (IMO) is the high degree of probability that the wave pattern generates (directional) and with the help of RSI we have a likely limit where the short term trend is going to change (likely limit).

I collected 72 pips shorting today for 5 standard lots and each pip represents just under £31. So I made £2220. I am not complaining

I have now opened one standard lot "buy" position. Opened a bit too early so I am 6 pips behind but not going to lose my sleep on that.

Cheers

Well I wouldn't complain at all! lol great results.

Are you trading all the waves?

[mich]

Originally Posted by wrtm_19

Well I wouldn't complain at all! lol great results.

Are you trading all the waves?

Well admittedly I prefer to trade with the dominant waves. The corrective ones are much trickier as we already know. Actually many experts argue that in some cases they may not be any corrective weaves. Few days I avoided any position with corrective waves but by drawing channels you get the drift and can make few pips as well. Also I tend to close my positions when I feel that the momentum is lost (or I have earned enough). Today after closing that 72 pips position I noticed that the downtrend was still continuing. Well one of those things.

I have not read Mr Miner's book yet (though like the nice green color wrap) so I can be excused of being ignorant.

Cheers