10/07/14 – 15.49 pm European Time – My Stop Loss has been taken out on this usd cad trade, giving me a loss on my trading account balance of 1%. As predicted the W4 did fail and a new bullish trend did present itself forming a Wave 3, but the momentum wasn’t with the trade and it pulled back and took out my stop loss. Moving forward with this type of XTL breakout trade on the lower time frames I am going to ensure the first Blu bar (Long trade) or Red bar (Short trade) is shorter or average to the preceding 20 bars and make this a hard and fast rule. I will still consider all other indicators and studies as an aid to making trade decisions, but my main factor will be the length of this first XTL bar compared to the preceding grey bars. So this USD CAD trade was a failure, but lessons learned for future XTL breakout trades on these shorter time frames. As Below
10/07/14 – 08.40 am European Time – A first Blue XTL bar has occurred on this 13 minute chart for USD CAD . Although the size of the bar is borderline too long for my XTL breakout Strategy the Wave 4 criteria for this Elliott move has been broken. In my experience with stock price movements, if this Wave 4 criteria is broken then its current trend is broken and a correction is possible. This 13 minute time frame for usd cad is this theory but want to try it out on this trade. The entry point is calculated as normal with this strategy at 150% the length of the first Blue XTL bar and taken from the low of the same bar and projected up. Entry point @ 1.0663 with the stop Loss @ 1.0563 (Stop Loss is calculated as 150% of the length of first Blue bar but ken from the high of the same bar and projected down). The trade triggered on the third Blue XTL bar and I am into this Long USD CAD trade, as below.