The ABC buy set up, I posted on 1 June was triggered by Friday's strong close.
The chart below outlines one approach to trading strategy for readers interested in following this set up.
You can access an explanation of the original set up via the link below
- The initial stop is placed just behind the trough at C. This strategy also allows for the stop to be lifted in some circumstances if an uptrend does get under way. If this happens, I'll post details
- Half the position is sold if price reaches the first objective which is the midway point between B and X (less bid/offer spread)
- The 2nd target is just under a Fib projection cluster. This projects that the next major swing up from C will be 61.8% of the O/X swing and 127% of the X/C correction