Elliott Wave Oscillator

Discussion in 'Technical Analysis' started by dima777, Jul 29, 2008.

  1. dima777


    I want to ask if anyone can give me their guess on what the black bands on the Elliott Wave Oscillator in the attached images are. I know that the oscillator itself is the difference between the 35 and 5 moving averages. But what are these bands?
    Any comments are highly appreciated.
    PS:The images are from Advanced Get.
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  2. dima777


    here is what the developers are saying:

    A major task in using Elliott Wave Analysis is to identify Wave Three's accompanied with a strong Oscillator.
    In the past we have done this by
    visually comparing the size of the current
    Oscillator with that of the past.
    The Oscillator Break Out Bands provide
    an UP Band and a LOW Band. Anytime the software labels a Wave Three, the Oscillator needs to be comfortably above the Break Out Band. We recommend a setting of 80% for these bands. The chart on the left is the Daily Swiss
    Franc Dec 94 contract. Here the software labels a Wave Three Rally and this rally is accompanied by a strong
    Oscillator that is breaking above the Breakout Bands. Therefore, this Wave Count can be used for this market at this time. Another example is shown below where the Oscillator is above the Breakout Band and confirms with the Elliott
    Wave analysis. The Break Out Bands are not just moving averages - they are a proprietary indicator developed by Trading Techniques, Inc.
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  3. dima777


    can anyone please comment?:)
  4. My guess is it is an indicator that measures momentum, and in that way can identify what exactly is the 3rd Wave, given that Wave 3 is the most POWERFUL in an Elliott Wave sequence.

    The difficulty with Wave 3's is that they are often "complex" . . . meaning that they sub-divide further into 5 smaller waves.
  5. Yes, it is still all hooey.
  6. dima777


    thank you for your replies....i am still at a loss how these black bands are calculated....can they be adjusted moving averages???
  7. cosmic



    the bands could be a longer term bollinger band running on the osc. if you normally use 5 & 35 for the EW Osc, the MA length for the base of the bands could be around 70 - 100 I guess.

    Way more efficient would be to calculate the band levels out of the historical distributions of the osc...

    good trades,
  8. dima777


    thank you very much for your opinion Cosmic,
    Can you please elaborate on how you think the historical distribution of the oscillator can be used to calculate the bands?