EUR/USD Long Trade
Higher time frame: Daily
Lower time frame: 60m
Adam is Polish, and English is not his native language. The comments that follow are his,
but I have added a few explanatory comments of my own in italics, in parentheses. I have
also re-created the charts he sent and included chart comments so you can more easily
follow the trade. This was an ideal ABC setup and Adam used all of the factors taught in
this book, which he learned from prior Dynamic Traders Group educational material.
The EUR/USD Setup
Major trend bullish
Possible ABC correction
Possible long trade
My assumption was that a corrective ABC should unfold. In my trading methodology,
I trade on hourly time frame in the direction of the higher daily time frame. I use DT
Oscillator (momentum) position to help me get in the trade. What I saw on the chart was
a three legs down move or a potential ABC. Wave-C divided into a nice five-wave pattern
with subdivision of waves 3 and 5. I have made all necessary price projections, which
give me a narrow zone of 1.4299 to 1.4308 (for support). (See Figure 8.1.)
This price zone included:
1.4303: 78.6% retracement of the October 22 to November 23 rally
1.4305: W.C = 100% APP W.A
1.4299: W.5:C (Wave-5 of C) = 162% APP W.1:C (Wave 1 of C)
1.4208: W.5.5:C (Wave 5 of 5 of C) = 162% APP W.1.5:C (Wave 1 of 5 of C)
The EUR/USD hit that zone on December 20 at 1 P.M. Central European Time (CET).
This low was one bar after the 62% ATP of Wave-A (not shown on chart). The 8 daily
DTosc was deep in the OS zone. It was a very strong candidate for a Wave-C low.
The Trade Plan
My trading plan for this set up was to trade two units. I would enter the trade with the
one bar high strategy (60m trailing 1BH) following the next (60m) 34 hourly DTosc
(momentum) bullish reversal. In case I am wrong, I would trail my first unit with onebar-
low (trailing 60m 1BL) exit strategy at 50% retracement (if price reaches the 50%
retracement) of the December 18–20 decline. (See Figure 8.2.) I will adjust my stop-loss
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