JXY Bullish and Bearish Potential

Why trading and wave analysis are two different things. Wave analysis by itself is not a trading
methodology. It is simply an analysis of what could happen. In school we were taught that every
analyst has two counts: A bullish and a bearish, or a primary and a secondary count. And when an
analyst becoms a trader it offers tradeable patterns which can be exploited. The chart is a result
of this. Red is the primary count and green the secondary count. The tradeable pattern for the primary
count is the red ABCDE triangle. The entry would be a close below (D) red dotted line. The Wavy Tunnel
Exit would be a close above the filter or the 12 EMA (green). The entry long for the secondary
count would be a close above the ABC correction pattern (B) green dotted line. The exit would be the same
A close below the 12 EMA. This of course is if the patterns remain simple and do not morph into
more complex correction patterns. ( Why ever trade starts with a stop loss or point where we are wrong in our
analysis. This is where wave therory plays the best rule. Because it has very specific rules for
wave structure. : wave 2 can trade as low or high as wave one but not beyond it. wave 4 cannot
close into wave 1. wave 3 cannot be the shortest wave in a five wave structure. A corrction happns
within parallel lines.
And it offers us some guidlines for points of possible corrections. Such as: .681 is the most common wave 2 correction.
.382 is the most common wave 4 correction. Wave C of an ABC correction most commonly trades within
the previous wave 4. etc)
So where does this leave us as a trader. Develop specific trading rules. With entry, exit points
both profitable and not. Stick to these rules. Stick to these specific rules for a given number of trades
(ON A DEMO ACCOUNT I used 50 trades) to see if you have a trade plan that offers a win rate ratio that is acceptable
for you. And if you use wave analysis. Trade The Pattern Not The Count...Jeffery Kennedy