The problem with it is that it's very subjective. One EW guru has a completely different take than another. It looks fantastic looking into the past because you can make it fit, but projecting it into the future has never been any use to me where I subscribed to a service or tried to do my own analysis. I'll still look at it a few times a year just to see what the EW crowd might do though.
I'm sure it's more accurate than using the moon as a trading signal. With Elliot wave for me it's's all about catching the corrections. Let the wave show you the trend and from there you can extrapolate the correction levels. I don't think I've ever bought a stock on the way up in my life...it's all counter trend. Like they always say a trend is your friend until the end.
I know some people who traded a moon system. It was called “The Delta Phenomenon”. They did extremely well then one day it quit working so they quit trading. I’m sure it’s like everything else and has good runs and bad. I believe there’s something to EW, the moon, astral alignment, etc. I believe it predicts human behavior to some extent but I’ve had better results looking at supply/demand data to get general future direction. Then I just set traps using TA and some rules I’ve adopted over the years. I’ve entered a few good trades based on EW but I’ve never went all the way down the rabbit hole myself. This is all in commodities of course.
The biggest trap for the trader is that it creates a prediction mindset and goes right against good trading habits like seeing what is happening in front of you and act on that.
I totally see that, but the thing I like about cycles is that they give you a statistical look at times price is more likely to change direction. I usually tightened my stops when a cycle predicted a turnaround. I also increased position size if the price ignored the cycles prediction.
There was Mr Robert Minor(sp?) and his magical software decade or 2 ago. Didn't hear much of him lately. That was a cult by subscription.
Hello, I just found this site/forum. This is a neat place. I've heard about EW and even bought books. It seems you (or in this case, I) need a software to "accurately" draw the waves and even then the waves change into other waves. Do you use a software?