This set up has a risk reward of 2.87 which is a decent risk to reward ratio.
As emphasised on the chart, personally i would take this trade if it retraces to wave 2 which is a re-test of the broken structure and would give us an ideal entry with minimum risk.
Trade with care
TP is near the previous high
Overall the structure is down, so this is actually a counter trend trade on a larger time frame (daily)
However, we can capitalise on Wave C of the retrace (ABC)
As emphasised on the chart, personally i would take this trade if it retraces to wave 2 which is a re-test of the broken structure and would give us an ideal entry with minimum risk.
Trade with care
TP is near the previous high
Overall the structure is down, so this is actually a counter trend trade on a larger time frame (daily)
However, we can capitalise on Wave C of the retrace (ABC)