[00:01] Sergey.  This is the Kigai Canal.  And in this video, I'll show you an easy-to-learn strategy that gives us an extremely high risk- to-reward ratio.  Let's get straight to the point so you get the gist.
[00:16] I have already shown you this strategy in the My Trading System playlist.  This is a strategy for working out zigzags.  That is, after an upward or downward trend, we saw a zigzag correction and, upon receiving certain factors, we entered
[00:31] into a continuation of the trend and an exit from this zigzag.  That is, we entered either at a signal was formed, namely, when there was a rebound from the golden ratio and the formation of some technical factors, or when there was a breakout of a given trend line,
[00:46] which I will draw through the beginning of the zigzag and the end of the bi-zigzag wave.  That is, this trend line.  And now I want to show you the ideal conditions for practicing this strategy.  The situation will be called entry waves.  What do
[01:02] sunset waves mean?  This is when the trend is just changing to the opposite, an upward impulse is emerging, followed by a zigzag correction, and we are entering a trend change in the global picture and a continuation of the trend simultaneously in the
[01:17] visually what I mean so that you understand.  Let's say we have a correction of the senior degree here.  Then the correction ends.  We see a five-wave impulse followed by the formation of a zigzag.  According to the structure of the
[01:33] example, looks like a zigzag in the global picture.  And based on this five-wave impulse after the implementation of this correction, we can assume that a new trend is now forming, because a five-wave impulse is
[01:48] either wave one of a new trend, or wave A1-Zag, that is, a correction of a higher degree.  Simply put, after a long downward correction, we need to see the formation of this five-wave impulse with specific, clear five
[02:03] waves and after that a zigzag correction.  Then we can assume opposite.  And already seeing this situation, we can work out a zigzag with an extremely good ratio of potential profit to risk.  Let's say,
[02:18] yes, we entered here from the level of 0618 when some factors formed in the local picture or when the trend line was broken in this place.  And here we are witnessing a complete change in trend. Since these are entry waves, that is, the
[02:32] beginning of the trend that has begun, we can catch an extremely large movement here in the direction in which the trend is going .  That is, let's say, if this is a five-wave impulse, then we are expecting the most impulsive, usually the third
[02:45] wave.  This is under an optimistic scenario. In a pessimistic scenario, we can still expect an upward movement, but with limited potential, because , let's say, these incoming waves could turn out to be not a five-wave
[02:59] impulse, but part of a zigzag, that is, a correction of a higher degree.  Let's say this is correction of a higher degree.  Let's say this is wave A, this is wave B and this is wave C. Here we have a wave emerging within this correction and then the downward
[03:11] movement continues.  That is, in any case, we would have caught an upward movement here, but with more down-to-earth goals.  To make it clearer, let's look at an example on a real chart.  This is euro-dollar,
[03:24] thirty-minute time frame.  First, on the left we see the formation of an upward movement, then a correction of a higher degree, which looks like a zigzag correction, that is, there is a downward movement, then a sideways
[03:36] correction and another downward movement.  This correction looks like a zigzag.  That is, we can assume that this is a correction of the highest degree.  And after the formation of this zigzag, we see a five-wave upward impulse.  This is
[03:50] see a five-wave upward impulse.  This is wave one, wave two, wave 3, 4, 5. Then there is a downward impulse, a sideways correction, and another downward impulse.  A five-wave impulse and a zigzag correction after a higher-degree correction to the left,
[04:05] which most likely recently ended.  Seeing this situation, we can enter into a zigzag strategy.  That is, for example, here we can note the resistance trend line, which I drew through the beginning of the zigzag and the end of the
[04:19] as far as I can see, is a triangle for us.  To make it more visible, I triangle for us.  To make it more visible, I will mark the waves.  This is wave A, B, C, D and line.  And we see that the trend line is broken.  Therefore, at this point we
[04:34] can enter a position, place a stop-loss beyond the end of the zigzag according to this strategy and take profit, and, in accordance with our risk management, that is, the minimum ratio is 3: OD. We subsequently saw a complete
[04:48] the correction of the highest degree ended, we saw this situation, entered when the zigzag trend line was broken, and our trend changed to an upward one.  This way, when best ratio of potential profit to risk.  I would also like to
[05:03] draw your attention to the fact that, as a rule, when working out this situation, trend reversal figures are formed.  That is, for example, here we saw a downward movement.  Next, a, ascending and, accordingly, then a
[05:17] downward correction.  That is, we have a double bottom figure formed here, which also tells us about a change in trend.  Or a situation like this may arise .  Let's say it's wave A B, wave C, which is a
[05:30] five-wave impulse.  Next we see the beginning of a new trend, a zigzag beginning of a new trend, a zigzag correction and further upward momentum.  And as a result, we can see here that we have a trend change figure, a
[05:43] head and shoulders.  That is, everything here will be interconnected.  And the potential of these formations can, for example, be used as targets.  I also want to remind you of the norm for the second wave.  The second impulse wave in most cases
[05:56] impulse wave in most cases corrects wave one by 62%. That is, if I mark the Fibonacci correction levels for this movement here, let's see where the price bounced from.  I mark the Fibonacci correction levels
[06:09] for this movement.  And we see that the price jumped exactly from the level of 0.618, that is, from the golden ratio.  So, we have strategy looks like and how to work with it.  But let's move on,
[06:23] because that's not all.  There is an even more ideal example of this situation. And if we see a formation after correction of the highest degree, the so- called initial diagonal.  If you've been following my training playlist on the channel,
[06:39] is the structure that starts any trend.  And, for example, if we see here a correction of a higher degree, let's say it is a zigzag of a higher degree, then an initial diagonal is formed, which looks like a gradually
[06:52] narrowing range, ascending or descending.  That is, we are experiencing this narrowing of the range.  This is our initial diagonal.  If we see that initial diagonal.  If we see that
[07:05] likely to continue its upward movement.  Therefore, after correction of the senior degree, there are two options for realizing this situation.  The first option is impulse and zigzag.  And the second option, the best one, is the initial
[07:18] diagonal and zigzag.  Here, accordingly, is the first situation with the impulse, and here is the situation with the initial diagonal. The probability of continuation of the upward movement when this scenario with a diagonal is realized is higher.  And I'll show you a
[07:32] real example.  We worked on this situation in the Premium channel.  The link is in the description.  Here we see, after a long downward movement, the formation of an initial diagonal in compliance with all the rules.  So that's
[07:46] wave one, wave 2, wave 3, wave four and wave five.  Since an initial diagonal was formed here and subsequently a downward impulse, I assumed that a zigzag could form, so I waited for another upward
[07:59] corrective movement, then another downward impulse and a rebound from the 0.618 level, which I carried out along this upward movement.  That is, we take the Fibonacci correction level tool, draw it along this initial diagonal and see that
[08:14] the price reached the 018 level and then bounced back.  How did I act here?  Since this is the initial diagonal, I assumed that the trend is changing, and therefore the local minimum will not
[08:27] be updated in the near future.  That is, the local minimum is located at this location.  Here I entered on a rebound from the 0.618 level with half the standard position volume, placed a stop-loss behind the previous local minimum in this place and waited for a rebound and a breakthrough of the
[08:44] zigzag trend line.  The trend line is located at this location.  Then I saw that very same breakthrough of the trend line and added to the position.  At the same time,
[08:56] I moved the stop loss beyond the formed minimum of the zigzag wave B at this location. I added to the position just enough so that my risk was in line with my money
[09:08] management.  Let's say if I can lose a maximum of $500 in one situation , then I added to the position just enough to lose $500 when this local minimum is updated .  That is, it is my risk.  My
[09:20] position averaged out, and then I looked at minimum goals for myself. Let me remind you that these entry waves could either be the beginning of an impulse, that we would expect an upward movement within waves 3, four and 5. Or this
[09:35] could be waves A and B of a zigzag, so the growth potential here would be severely limited.  And the first thing I always look at is the pessimistic goals. I considered the minimum targets based on the zigzag norm, namely, that wave C
[09:49] zigzag norm, namely, that wave C of this zigzag is 62% or 100% of the distance of wave A. That is, I used the Fibonacci expansion tool, based on the trend.  I placed the first point at the beginning of wave A, the second point at the end of
[10:01] wave A, and the third point at the end of wave B. Thus, Fibonacci level 1 wave B. Thus, Fibonacci level 1 corresponded to 100% of the distance of wave A. so I did not consider it as a target.  Moreover, it did not update the
[10:14] previous local maximum.  But goal one was optimal.  That's why I set my take profit at this level .  I already taught you how to do this.  That , then we can consider the target in the region of level 1.618, that is, 162% of the
[10:29] Aigzag wave.  As you can see, I initially considered momentum, but we ended up with a zigzag, meaning an initial diagonal within wave A and a five-wave impulse within wave C. The downward trend
[10:44] continued, but I locked in my profit at the minimum target.  So, maybe because of these many explanations you are a little confused, so now I will give you specific step-by-step instructions on how to act in this situation, how
[10:58] to use this strategy.  So, first thing.  First, we need to visually see a correction of a higher degree on the chart .  If we confirm this with various rules and norms of the wave principle, it will be even better.  That is,
[11:11] visually we can see, for example, this movement is upward, then a correction of a higher degree.  And after this correction, the most important thing, I’ll mark the second step in yellow, we should see the formation of either a five-wave
[11:24] impulse, that is, such a movement, or the formation of an initial diagonal, that is, such a movement.  Let me remind you that the initial diagonal gives us a high probability that our position will go into profit.
[11:38] Third.  After the five-wave impulse, we need to see the formation of a zigzag correction.  Moreover, the ideal conditions for a rebound after this zigzag are if the price reaches the Fibonacci level of 0618,
[11:54] that is, corrects the previous upward movement by 62%. upward movement by 62%. Next, with a rebound from the 0.618 level and preferably with the formation of factors in the local picture, what factors could there be
[12:08] ?  Let's say this is an engulfing pattern as far as candlestick analysis is concerned.  That is, we can see a situation like this, where a bullish candlestick engulfs several bearish candlesticks at once, or the formation of a
[12:21] candlestick with a long body from below during a rebound from the 0.618 level, or the formation of some local technical analysis figures, for example, a double bottom, or a head and shoulders.  If the appropriate factors are formed, we can
[12:37] enter a position for the first time upon a rebound from the 0.618 level .  Let's say, half the risk.  Not the full risk that was originally intended, but half the risk, because this is not yet confirmation for growth.  The price could easily go down.  In this case,
[12:53] could easily go down.  In this case, we set the stop loss beyond the previous minimum, which is located at this point.  Initially, our position may look like this .  What do we do next?  We
[13:06] draw a trend line through the beginning of the zigzag and the end of the upward correction of the zigzag, that is, the end of wave b.  This is what our trend line will look like .  And as soon as we see a rebound from the 0.18 level and a breakout of this trend
[13:23] line, we can move our stop loss beyond the minimum formed at this location.  That is, we transfer from here to here .  And we add volume to the position.
[13:35] The volume that corresponds to our money management.  That is, how much money management.  That is, how much step we look at is setting minimum targets based on this upward momentum along the
[13:50] based on this upward momentum along the , be sure to check out the training playlist and the wave principle. I have already taught you all this.  That is, all knowledge must be used in
[14:03] combination.  But even if you don’t understand the wave principle, you can still work through this situation purely visually.  Let's say, when the zigzag trend line is broken at this location.  The main thing is that visually
[14:15] .  That is, a five-wave impulse or diagonal, then a clear zigzag correction, then a rebound and a breakout of the zigzag trend line.  These are all the steps that, in principle, need to be taken.  Alternatively, you can not
[14:29] enter at this point, but enter immediately upon breaking through the zigzag trend line, so that entering the position is more confident.  Simply, if we combine entry on a rebound from the 0618 level and on a breakout of the trend line,
[14:42] we will get a better risk management ratio.  But to be sure, you can wait for a specific breakout of the zigzag trend line.  And this situation, as I already said, gives the best ratio of potential reward
[14:55] to risk, because after this you can catch a full-fledged upward trend, which is expected here further.  But if a more pessimistic scenario were to materialize, we might only see another zigzag correction
[15:08] before the downward movement continues. But we can still take back this growth.  Friends, if there are any points you don't understand, then be sure to rewatch this video and rewatch the parts that you don't understand.  I also
[15:23] remind you that the channel has a training playlist, a Wave Principle playlist, and a My Trading System playlist.  Study the videos, learn and improve your trading system.  Let me remind you that in order to improve your trading system, it is
[15:37] you found this video helpful, please give it a like, subscribe to the channel, and click the bell to stay up to date with subscribe to the Telegram channel, the link to which is in
[15:51] best.  Profit to everyone, win. I love you all and bye to everyone.