Week 4 Review

GOLD
Made a total profit of 208 pips.
This is the beauty combination of elliot wave and Bill williams' profitunity. This week down move, continuing the abc correction from last week (week 3). With a correct elliot wave count, you will always know when a trend ends and bill williams make it easy to count the wave.

How did i count the waves for this gold position?

Firstly i will look at the overall trend and AO divergence at the 4 hour chart meaning the momentum is decreasing. Is it a wave 1, 3 or 5? no idea at that time, all i know that it's an impulsive wave.

Then i move to a lesser degree wave in the hourly chart. A 5 wave move up totally spot on.There is AO divergence, a fractal, a bearish divergent bar, a change in momentum and the price is in the target zone. Bill Williams' five magic bullets that kill most of the trend. Then i simply trade the ABC correction.

EUR/USD
Made a loss of 28 pips. What happen? Well my 1st, 2nd and 3rd trade is just following the trend, then i made a loss in my 4th and 5th trade which is again a wave 4, then i decided to stay away from the market for a while. Lesson learned, next time be careful after a big move...


Next week EUR/USD Trading Plan
Looks like we're in an ABC corrective wave 2, wave 4 of C of 2 to be exact. I assume there's still a wave 5 of C, another down move. Wave 4 of C target will be around 1.2791, if the price exceed 1.2902 then the count fail. So I better look for a sell position than a buy position with a target around 1.2436-1.2628. Otherwise i'll just wait for this wave c to end and ride a possible of wave 3. :)

This week total profit is 180 pips..