I think it's interesting to take a look at a trade that didn't follow the (in my view) most likely scenario and what to watch for to limit any losses.
In my last post about this pair here I stated that the most likely scenario is that a wave 3 would follow, but unfortunately it didn't play out this way. EUR/CHF dropped 120 pips and then rallied back up.
Personally I gave a lot of pips back but that doesn't mean you have to lose money when this happens (providing you have a proper entry).
There are 2 big clue's that the decline wasn't a wave 3.
1. The assumed wave 3 didn't hit the 1.618 extension of wave 1.
2. After a 5-wave decline it rallied quickly back in wave 1 territory when price traded above 1,0887 (overlap !). So the decline from 1.10 is likely a X-wave.
So you know exactly where your count is wrong which is in my view the number one gift of the Elliott Wave Principle.
