judokamak wrote:MO, can you recomend a good source for wave analisys?
As i understand, you use 1-2-3 and 5 wave paterns...
I do not recommend wave analysis...
basic signals such as: 1-2-3, Ross Hook (single hook), Triangles (double hooks), closes > !< a line, & horizontal lines with 'position' ('stop loss') from a long term extreme or psych line (50, 100-125, 250) will suffice.
Before pulling the trigger, ask yourself:
I) why am I going short?
II) I'm 'wrong' if what happens?
III) if I'm 'wrong' then what might the price action look like; if it still looks like a short trade then I might have to rethink when it is that I am wrong before placing this trade.
IIII) has price been moving sideways? If so then I should consider taking partial profits (or liquidate) at the 50 or 83.33% retracements.
V) is this a suicide run ie you have position from a long term extreme and price action be damned you are continually shorting the market?
Once you know the why, if/then, & where you are going then you can place the trade.
Planning your trades and trading your plan is more powerful than the most advanced wave analysis.