Pennies.....I was half afraid you were going to point to wave counting as the way to identify the true wave reversals. lol Wave counting is such a huge challenge for me only because of those dang extended wave 3's and 5's!!!
Ok, now to get to work trying to add wave counts and whatever other indication of reversal I can to divergence and come up with a plan for trading off the divergence. Maybe SGs cloud on the smaller time frames to help pin down the impending reversal on the larger 1 hour and 4 hour time frame as divergence presents on the larger time frame? Not sure yet.
And I'm thinking that the best way to prevent big losses as I have in the past from trading soley off divergence is to use the previous high and a few pips as the breakout and stop point. Not sure about that though as it'll depend on how many pips loss that would mean from my entry based on that divergence and now wave counts. The 88.6 fib entries will certainly allow the least amount of loss when using the previous high as a stop.
I sure appreciate your reply, and yes, just as I waited until after the holidays to call the appliance repair folks about my oven, for their sake as well as mine, so as not to make work of the festive days, I'm sure your clientele put off calling you in to work on their systems so that they could enjoy their holiday and maybe even let you enjoy yours. lol
AI
