The truth of 5-0 Pattern ( Educational)
1) AB movement should be 1.13 to 1.618 but not more than 1.618 extension of XA LEG.
BC movement should be 1.618 to 2.24 extension of an AB LEG
CD movement should be 0.5 retracement of BC LEG
2) Stop loss: It varies but I prefer few pips below 61.8 retracement of CD
3) Take profits : It varies too But I prefer 38.2% and the 61.8%.
Entries might be done with a limit order
BC movement should be 1.618 to 2.24 extension of an AB LEG
CD movement should be 0.5 retracement of BC LEG
2) Stop loss: It varies but I prefer few pips below 61.8 retracement of CD
3) Take profits : It varies too But I prefer 38.2% and the 61.8%.
Entries might be done with a limit order
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.