The Question is when you have a saddle point should I take the inner fractals or outer fractals.
In the following picture you'll see that I took a third entry from a saddle point. At first I choose to set pending order at the AIMS level marked by yellow horizontal line showing outer most fractals Level was at 1.4290 for I set PO at 1.4289 that is 1 pip below AIMS Level for shorts as per rules for short trades.
Later I felt like it was ok to move to inner most fractals. The reason was that now I thought price had travelled enough sideways inside even a tighter range. there are advantages and disadvantages of it. its always a subjective decision. outer most fractals are safer , in that you dont get whipsawed but the downside is that you give back more if it turns around on the contrary inner most fractals has more chance of whipsaw but potentially smaller risk and larger gains. So the same universal law of risk applies, the higher the risk the higher the return should be.
After Reading this material you should be able to do the following: Objective 1. Understand Elliott Wave Objective 2. Count Elliott Wa...
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