SILVER/XAGUSD H4 Trading Idea

14 May 2023

The following plan focuses on a short strategy that takes advantage of an expanding flat structure, specifically targeting short opportunities after a price breakout in wave A, expecting a price pullback before completing wave C.

Strategy :

• Expanding Flat Structure: Identify an expanding flat structure, which consists of a three-wave pattern labeled as A-B-C. The structure typically occurs in corrective phases and has the characteristic of wave B exceeding the starting point of wave A.
  
• Wave A Breakout: Wait for a clear breakout below the starting point of wave A, signaling the end of the corrective wave B and the potential beginning of wave C.
  
• After the breakout in wave A, expect a price pullback. This pullback indicates a temporary counter-trend movement before the completion of wave C. Use technical indicators, such as Fibonacci retracements, moving averages, or support/resistance levels, to identify potential levels where the pullback may occur.
  

Take Profit:
Set a Target: Determine a realistic profit target based on previous support levels, Fibonacci extensions, or chart patterns. Consider setting a favorable risk-to-reward ratio, such as 1:2 or 1:3, to maximize potential gains.