get free forex signals from trading by Zigzag
A zigzag is a sharp, three-wave corrective pattern, labeled
A-B-C. Wave A is always an impulse or leading
diagonal, and wave C is always an impulse or ending
diagonal. Wave B is always a corrective wave, that is
zigzag, flat, triangle or combination. Therefore, we call
the zigzag a 5-3-5 structure (see Figure A.10).
In a zigzag, wave B can never go beyond the start
of wave A, and wave C almost always goes beyond the
end of wave A. If wave C does not go beyond the end of
wave A, it is called a truncated wave C.
Zigzag corrections can take the form of one, two,
or three zigzags. Three zigzags appear to be the limit.
Whenever there is more than one zigzag, another corrective
wave forms in order to link one zigzag to the other. In
a double zigzag, the first zigzag is labeled W, the second
zigzag is labeled Y, and the corrective wave that links the
two zigzags together is labeled X. In a triple zigzag, the
third zigzag is labeled Z. Wave X can form any corrective
structure but is usually a zigzag. It always moves in the
opposite direction of wave W
place forex trading signals by Zigzag
The first of two guidelines for entering a trade during
a zigzag is on a break of the extreme of wave [iv] of C,
provided this level is beyond the termination of wave
A (see Figure 1.11).
A second entry guideline is to wait for the extreme
of wave B to give way before taking action
(see Figure 1.12). The initial protective stop is then
the extreme of wave C. This conservative approach
prevents picking tops or bottoms without sufficient
evidence.
Ideally, traders will take these guidelines and
adapt them to their own specific trading style.
In fact, using a zigzag as an example, an even more
conservative trader could wait a bit longer before
entering and demand a five-wave move through
the extreme of wave B followed by a corrective wave
pattern.
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