Hello Forex Traders! I have a new trading example for you on the EURUSD chart. I managed to trade a bullish trend bounce on the 15 minute chart and to lock in some guaranteed profit. The fact that I adjusted my Stop Loss order above my entry point saved me from a big danger.

Signals of the Bullish Trend Bounce

1. I spotted a Spinning Bottom candle pattern that appeared after a a price decrease.
2. I spotted a Hammer Reversal candle pattern that came right after the Spinning Bottom.
3. The price was actually testing a bullish trend on the 15-minute chart, which was the reason to expect another bullish trend bounce.
4. The trend was getting tested for third time, which made me think that this might be a 5th Elliott Wave.
5. Waves 2, 3, and 4 were responding to the Elliott Wave requirements.

Stop Loss and Targets of my Elliott Wave Trade

According to the Elliott Wave theory, there are two potential targets of Wave 5:

1. At 100% of Wave  4
2. At 161.8% of Wave 4

I put my Take Profit order at the bigger target (161.8%) in order to stay in the market in case of a major price move.

I put my Stop Loss order below the bottom created between Wave 2 and Wave 3 in order to handle eventual price extremes caused by high volatility.

Live Trading Example

Notice that the price increase came rapidly and I was not able to react with closing the trade near the first target. This is why I though it will be better to adjust the Stop Loss order on 6 pips profit and stay in the market for another impulse, instead of holding the trade as it is. This protected me from a bigger danger on the chart.

The United States announced a better than expected ADP Nonfarm Employment Change at this moment. The release was for 263K on a 187K forecast. This cased a very sharp price drop on the chart, which went below the purple bullish trend line. Fortunately, my adjusted Stop Loss order closed my trade on profit.