Registered: Aug 2007
08-30-07 11:53 AM
Elliott Wave Strategies.
Different degrees of Elliott Wave are suitable for different strategies. Micro Wave degree (i,ii,iii,iv,v,Ī±,Ī²,Ī³,Ī“,Īµ) may be used in momentum trading, buy/sell when previous Microwave high/low is broken and set stop 2 point lower/higher. Aborted trade is more likely in Microwave Ī³ and shortened Microwave v. If these two waves are avoid, momentum trading may be more profitable.
Buy when Microwave 3.2:ciii surpassed Microwave i is profitable (+44 points and if not stop out + 64 points). Buy when Microwave 3.2:cv surpassed Microwave iii is less profitable (+30 points). Sell when Microwave 3.2:bĪ³ surpassed Microwave 3.2:bĪ± is less profitable still (+16 points).
This strategy bases on the assumption that if a high/low is broken the Dow will continue to move in that direction for more than 3 points because of the momentum of the Market.
Subminuette Wave 3.2:a is ~108 points long. Microwave 3.3:ci,iii,v are ~94, 90 and 89 respectively. Subminuette Wave 3.2:c is ~ 185 or 1.7 times Subminuette Wave 3.2:c. If this guess is correct, next move should be Minute Wave 3.3 down > Minute Wave 3.1.
If Dow opens up more than one point, Microwave iii will be shorter than both Microwave i and v, which is not allowed in Elliott Wave Principle, I will be wrong again, as usual, and have to recount the waves.