Ewj: elliott wave

The small "M" pattern was completed. Waiting for the big "M" to be confirmed. Take profit at measured move (previous high to previous low), but wait for a higher high as a sell signal.

Useful link:http://thepatternsite.com/bigm.html
"For swing traders, sell short at the second double top peak (F) and ride price downward to confirmation of the double top (the low between the two peaks, B). If price rises above the highest peak in the pattern (A), consider exiting the position because price is likely to continue higher. If price confirms the double top, expect the decline to approach the left side low (E). It usually does not make it all the way down, but it will be close."

 

Errata:
The small "M" pattern was completed. Waiting for the big "M" to be confirmed. Take profit at measured move (previous high to previous low), but wait for a higher high as an exit signal for the short position. Long position is still intact.

 

Elliott Wave Minor Wave Trading Strategy

1. Maintain Position according to the Minor Wave Count for a calculated length (1000 - 2000, 100 - 200, and 200 - 400 points move in Dow, S&P and NASDAQ respectively for this particular Minor Wave).
2. Trade counter trend during Minute Wave correction for a calculated length (100 – 200, 10 -20, and 20 – 40 points move in Dow, S&P and NASDAQ respectively for this particular Minor Wave).

Our EWMTer maintains a long position to be sold at around 1000 - 2000 points profit in the Dow. He tries to make some 100 – 200 points short term profit in the Dow out of boredom.

Today futures point to a negative opening which will confirm the big “M” pattern.
Strategy.
Stay short (opened yesterday) until there is a buy signal around 13650, 1500 and 2632.

 

Market drops as futures told. Prepare to take one half of the profit expected at the target and all when there is a higher high.

 

Unexpectedly stop out early by a higher high.:eek:
This is an "M" pattern failure?
Looking for another entry point for short position.

 

Consider re-enter short position at a lower low, because a-b-c count is completed. Set stop at the last high.

 

Use previous target as exit point.

 

Short position re-entered. Set stop an previous high. If stop out quit for today.
Plan to cover near 13650, 1500 and 2632 when there is a higher high. 2/3 expected length will be accepted.

 

a-b-c completed, may break down to new low soon.

 

The Market spends most of the time deciding where to go. This may be a big decision for the Market so it takes more time than usual.