I have been studying elliot wave for the past month or so. I know you either love it or hate it . The only part no explains properly is after wave 5 is complete how do make the difference between ABC correction and a new wave in real time .Is there any quick explanations on how you read it or maybe a good book that explains it in more detail ( ABC) . I am reading neely's neowave book now but you need to be a rocket scientist to understand that book.
ah my friend.. that is where the beauty of Idiot Wave Theory comes to fruition.. after a complete 5 wave impulse you get to label the a-b-c correction however you want... then when it doesn't work and you realize that the 5 waves up aren't complete yet you get what in idiot Wave Terminology is referred to as a "DO-OVER" and you can start your count over and over and change it and replace it until you get it perfectly correct...... in the past of course. The problem comes in when you have a broker that only lets you trade from the Right side of the screen... -------------------------- Please please please... do not trade off EWT.... I hate seeing people fall for this scam as I did when I first started and lost $$$ believing this actually worked in real time....
I think it works as a means of keeping with the trend . But when it works you can make some good money off it . It just after the wave 5 there must be a way to recognised where the count starts over. Is it it a break of wave 4 that confirms a reverse trend . If it stays between 4 and 5 is it a ABC !!! see attach
thats the problem.... there isn't a 100% rule.... its open to interpretation by whomever decides on what rule they want to make up and follow.... If you want to follow this idea.. I frown against it.. but if you really must..... then I can give you a website that you can sign up for a free trial to watch how its called in "real time". But I warn you that.... I lost soooo much money following this guy (before he had a site) when I first started trading... whatever you do please cancel before the free trial subscription runs out...
(1) Read Prechter's book instead of Neely. (2) Look around elliottwave.com for whatever tutorial tidbits you can pick up. Sign-up for the daily freebie. (3) Prechter does emphasize risk control over blindly following the "theory". (4) When a market "conforms" to the theory, it's the greatest thing thing in the world when you anticipate it beforehand. If you believe a market has made its "5-peak", you can then develop an expectation regarding how far the market can retrace, solely based on its prior price movement. You can also wait for the "C-wave" to happen, which is where the bigger money tends to be made on the short-side. (5) Don't let small losses grow into be huge losses.
after wave 5, naturally it should take time to turn around, during this turn around time, the wave should be choppy and rangy, it should looked like sloppy M top or sloppy W bottom, after this wave b/o the range the new wave begin.
Yes Nkhoi, the AB formation. Unfortunately Price Movement is irregular and trading systems have to be regular or they don't work. I always look for the AB in all timeframes and waves since it does appear, however in my experience it often doesn't appear. Also the M/W formation can be a w1/2 tho not known til after the fact. Watchdaride, use a parallel lines tool of some sort; learn to use the Fibonacci Price Levels tool â the most accurate price projection tool/indicator I know of; try the Stochastic Oscillator or two on charts; a Time target tool, I prefer to Bar Count â counting individual price bars, Long running count plus Short count on the waves within waves, using Fibonacci or Lucas numbers depending on the instrument. Not sure the attached pdf will be that helpful and NB: all EW charting programs change their count/labeling as the price progresses.
I don't understand the constant search for holy grails when the answers lie within us all to study, hone our skills and execute a methodology without exception until such a time when deviation is warranted. Seems like alot of wasted time and money for most. That's not to say that Elliott/Gann/Fib/Astro isn't without merit, just perhaps for the more advanced speculators with the correct instruments and above all, proper scaling. I think money management and tape reading would be more in line for extracting money on a consistant basis. --less is better.
There will never be any "100%" technical indicator and the sooner any one who uses technical indicators realizes that the sooner they will start making money, the bottom line is that what drives the market is buyers/sellers, at any point someone can destroy a technical indicator by sending a market order for 1,000,000 shares, what happens then?? technical indicators are bullshit, the only reason they hold value is because the masses of people choose to follow them, and they then become a self fulfilling prophecy.