The Only 3 Rules That Matter

Impulsive VS Corrective

Waveforms and Fractals (Cycles and Degrees)

THE ONLY 3 RULES THAT MATTER

1 - Corrective Wave Never Returns 100% From Last Impulse

2 - Wave 3 is never the shortest

3 - Wave 4 Doesn't Enter Wave 1 Territory

Your Ideal Setup For Any Trade

Stop Loss at 1, because it invalidates wave 1 as impulsive. Breaks The Rule #1

Take Profit 1 and 2, because they are extensions of wave 3. The impulsive movement you ideally want to trade.

How To Identify Any Wave As Impulsive/Corrective