Tip #1
Utilize the Red wave to look for long or short setups. By doing so, you increase the probability of a successful setup by eliminating false signals
If the red wave is oversold, look for buy signals
If the red wave is overbought, look for sell signals
Buy signal but the red wave has not turned up; Selling pressure is still prevalent Tip #2
If you get an extremely volatile move and a signal pops up, it is a sign to take profits or close position, NOT to enter.
Sell signal during a volatile move Tip #3
Every trade will go against you in some way, so it is important that you manage your risk and/or leave room. In the example below, we can see not so long after price reverses extensively
Tip #4:
The highest confluence setup is when all 4 waves are together
Sell signals when all waves together