[Preserved Version] Trend Reversal Initial Alert ~Shodo Ride~ SL/TP (Stop Loss / Take Profit) Strategy

In this article, we introduce the signal notification points of the Trend Reversal Initial Alert [Shodo Ride].

We explain the sign notification points.

If you are interested, please visit the page below.

https://www.gogojungle.co.jp/tools/indicators/50668

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Introduction
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This tool notifies signals at the location of the Elliott Wave 3 waves after the Dow Theory trend reversal. Based on this,we will introduce the setting for stop loss / take profit strategy.

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Recommended setting ① for SL (Stop Loss = Loss Cut)

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As in the example below, the trend reversal starting point is used as the SL.

The justification for the stop loss position is that you hold the position unless a trend reversal occurs,making it harder to lose.

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Recommended setting ② for SL (Stop Loss = Loss Cut)

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Draw Fibonacci from the trend reversal starting point andset SL at an arbitrary value.

Compared to (①), by limiting the risk,a favorable risk-reward trade can be anticipated.

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Recommended setting ① for TP (Take Profit = Profit Realization)

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A method to set TP at N value. In the below example, since there is a pullback up to about 50%, the N value is at 150% (50% + 100%).
Solidly accumulate profitsis a suitable method. It may also be good to set TP uniformly at 150% or so.

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Recommended setting ② for TP (Take Profit = Profit Realization)

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A method to hold the position until the trend reverses. This method is suitable when the trend is strong, and a high risk-reward trade aiming for a big move can be expected, potentially reaching 10x in one shot.High risk-rewardtrades are anticipated.

If you adopt this method for all signals, the risk of a losing streak increases, so it is recommended to use it only when the market recognition indicates a strong trend.

That is all. Thank you for reading.