Traders, here’s a defined risk options trade counter to the uptrend in the S&P 500 and NASDAQ. And we’re not using indicators because they’re telling us what we already know.
Todd’s Trading Lifestyle Vlog #34 – Bad Bitcoin Trading and Good Whiskey
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Right on Todd, any indicator will show divergence. but I’ll tell there are thousands of ways to slice and dice it and everyone is an expert in there own right. Its refreshing to hear your point of view. Removing the noise! Redundancy kills my trading.
Hi,
The stop loss used on the trade was the 78.6% retractment . For a zig zag correction, that would normally be fine.
But as i understand, in wave 4’s, flats and triangle corrections are more likely than zig zags, (especially if wave 2 already had a zig zag correction, Since wave 4 corrections often alternate with wave 2’s.)
In this case, if wave 4 turns out to be a flat (or an expanded flat) correction, then wouldn’t the stop loss of 78.6% retractment, be too low??
Dwight.