The Wave Principle Basics
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