Putting your stop loss at the obvious Fibonacci level (e.g., 61.8% retrace of Wave 1) where every other trader places theirs. Solution: The market often "liquidity hunts" these levels. Place your stop a few ticks beyond the Fibonacci level or the Wave 2 extreme. For example, if the Wave 2 low is at $50.00, place your stop at $49.85.
: Covers identifying market highs suitable for selling or short selling. Putting your stop loss at the obvious Fibonacci level (e
Exiting too early is a cardinal sin in wave trading. The most painful experience is selling before Wave 5. Similarly, shorting before Wave 4 completes can be deadly. The "throw-under" is a cunning pattern where Wave 4 briefly breaks below the parallel channel of Wave 3, trapping traders, before reversing into Wave 5. For example, if the Wave 2 low is at $50
Best for: Intermediate to advanced traders who understand basic wave theory but struggle with real-time application. The most painful experience is selling before Wave 5