How to Trade the 2 and 3 Waves Strategy
On this update, we dive into the strategy that helped Lee get out of his big winning trade and how anyone can spot these trades.
Forex wave strategy
And then in the meantime, we’ve rallied much higher since then. So let’s take a look at what happened. So we got this low here. Then we got a storyteller low on the histograms. Now we’ve got a new low that broke this 12,500 here. And then we got a higher, low on the storyteller. Now, straight away the yellow line kicks in and gives us the signal. So we have one, two, one, two. Now what the interesting thing was, and this is one of the most powerful trade setups that there is, is that then we get a new third wave lower. Okay. There’s there’s the breakdown. There’s the third wave lower. What we get here then is a higher, low on the storyteller. So three lines kick in, okay. Or three, three troughs here kicking one, one, two, and three. That’s telling us that this move to downside is weakening and we’re going to build up some strength and we’re going to start to push up.
That’s why I got out of the short trade on the German Dax guys. All right. So that’s, um, that’s set up on the three wave and it works great. You get these three ways and two ways, two ways of great three waves of brilliant, uh, and four and five waves are outstanding. Now let’s take a look at the tax on the one hour chart to show you what’s going on here. So we’ve got some trend predictors setting up these that those red arrows telling us that this market stock should start to come down, but if they don’t come down and we start to see the German Dax on the one hour, start to break above this high. Now, if we break apart this high that’s 12, nine 50, all right. Now, if that happens, then the storyteller’s going to be way down here and the lines are going to kick in and give us that signal that it’s ready to short.
So I’m looking for a two wave. That’s a one, two, one, two. Okay. That’s not a three-way. If it comes down and then makes a new hire then, and then the storytellers even lower, that will be a three-way. Then you’ll see a big market move to the downside. So we’re in a really interesting area here where we could see a big reversal. We just need to see the setup. And if you learn the setups, you trade those setups any time. And I think what we see a lot of time is that, you know, if you haven’t got these setups and strategies, people make money on the lovely trends, but when the market goes a little bit sideways, like it is here, they lose it all. But you need a strategy for every trading environment. If you’ve got that, you’ve got the tools then to trade at any time within the market environments. Okay. So two and three ways work tremendously. Well, save me some fantastic money, um, on the German Dax with that lovely full of, for our reversal in here. Um, which played out very nicely indeed. Okay. How else guys? And that’s how you trade the two and three ways using our storyteller signals.