The 76 correction strategy aims to pick up optimal continuation trades into large retracements.
It's a trend following strategy that aims to enter into strong counter trend moves to a 76% retracement of the previous trend leg.
This strategy usually performs best when combined with Elliot wave. Waiting for there to be a full impulsive leg in 5 waves followed by a big ABC correction.
The strategy aims to pick up trades into the "C" point in such a correction.
With a default minimum risk:reward of 1:3 the strategy is expected to breakeven on win rates of 35% or higher.
It's a trend following strategy that aims to enter into strong counter trend moves to a 76% retracement of the previous trend leg.
This strategy usually performs best when combined with Elliot wave. Waiting for there to be a full impulsive leg in 5 waves followed by a big ABC correction.
The strategy aims to pick up trades into the "C" point in such a correction.
With a default minimum risk:reward of 1:3 the strategy is expected to breakeven on win rates of 35% or higher.