Thanks Steve. Thank you for this massive + 29R today on $/Yen on 3 min chart. This was possible with the market analyzer of Ninja Trader which allows me to follow several currencies at the same time. The set up was a standard TS3... But I chose not to close the trade on first target as the DP support on 15 min chart was not yet touched. When this DP on 15 min chart was reached, we were already on strong STF in 3 min.... So I let the trade follow its way until I was stopped with a 29R profit!!!!!!
Again, this is a very useful observation as it gives you an approximate target for the first swing of the correction following the end of a completed 5-wave sequence. In Elliott wave terms this is the Wave (1orA)
Here you can see how the first swing off the Wave (5) high found support "in the area of" the price level of the prior minor Wave (4). In practice this area is usually slightly exceeded, and support is found just beyond this prior Wave (4) level, this is usually at the Decision Point (DP) level form the prior Wave (4).