Cotton - Heading down again.

٢٨ ديسمبر ٢٠١٤

New setup in Cotton formed from a DP level that has a confluence with an ABC correction. This is one of the clearest Elliot wave patterns to play. The setup is giving a Risk Reward ratio at 2.5 at the quite conservative typical Wave 3 target. As an extra odds enhancer it was an VSA spike in the volume moving the price towards the entry.Target is in front of the swing low from 20 november. Last setup with this technical analyses was from a Decision Point that was at same level as a Elliot Wave 5 level and gave a very healty reward in R. In all my technical trading I like to stack my odds together at the entry levels with preferably more than one technical structure.