A pretrade risk lockbox at Elliott ABC ends

The wave count is a scaffold

In this editorial reading, an Elliott wave count does not authorize position size. The five-wave map is only a scaffold that shows where a new impulse may begin and where its target zone can be fixed in advance.

The historical workflow specified a completed Elliott sequence as three impulsive trend waves joined by two corrective waves.

Only three correction endings are candidates

Candidate entries were limited to three correction endings: wave B into impulsive C, wave 2 into impulsive 3, and wave 4 into final impulsive 5.

Only a simple three-wave ABC correction was allowed. Complex corrections were excluded as a source of confusion.

Nine named Elliott degrees, from grand supercycle to subminuette, were treated as avoidable complexity. A present simple ABC did not need to be nested inside a larger degree.

Wave C is marked with fixed ratio bands

Wave C completion zones were fixed by measuring C as 0.618, 1.000, or 1.618 times wave A and as 1.272, 1.618, or 2.618 times wave B. Those Fibonacci wave multiples produced minimum, typical, and maximum bands.

A live reversal cue was required before the correction was treated as complete. The allowed cues were strong reversal action, an oscillator turn, an inside day, or a candlestick reversal.

Probability risk is the remaining uncertainty that the correction has actually ended. The historical workflow reduced that uncertainty by requiring the simple ABC shape, a ratio completion zone, and the live reversal cue.

Both locks are frozen before size is considered

Cash risk was treated as known when entry sat one tick beyond the latest bar and the invalidation stop sat one tick beyond the correction extreme. A print at that stop cancels the wave hypothesis and defines the money risk used for sizing.

The impulse target zone is a fixed price band for the next trend wave. It is calculated before entry and left unmoved once the position is live.

A setup was entered only if the frozen impulse target versus the frozen invalidation stop met a minimum risk-reward ratio of 2 to 1. Editorially, size is considered only after that filter clears.

The exit map is written before the order

The entire exit-stop plan, the pretrade exit map, was written before any order was placed. It included a partial scale-out at the first reward zone and removal of the remainder at a second zone.

If price closed beyond the first reward zone, the remaining stop could be advanced into that first zone to protect leftover size.