On the contrary. Elliot wave is a theory like many others with many many flaws and you can completely disregard it when using fibs or any other indicator. elliot waves do not drive or lead the market, or dictate where it should go. The market moves in waves, thats a given, regardless of what elliot waves says. I will go as far as stating that elliot waves are one of the most over hyped tool there is. It looks amazingly good in hindsight, and all the people i know that are using Elliot Waves cannot agree on which wave we are currently in or where to start the count, etc. A bit sketchy for a inexperienced trader. So i seriously advise Susana to stay very far from EW until shes able to make money with something easier to implement, like the fib retracements. Nobody can argue with a fib retracement, the line is there at a precise value. Everyone looking at the same chart should be able to agree on the fibs, while with Elliot Waves, its like looking at psychedelic art while high on acid, everyone will see something different. Wallace, i'm not doubting your trading skills using EW or anything.
"From Successful Anonymous Trader: You simply cannot have any confidence if you do not have a method or way of identifying trades along with money management guidelines. You're lost in the woods, so to speak. I was there for many years. What did I do? This may help a lot of you: I threw out 99% of all the crap I learned about oscillators, divergences, Elliott Wave, cycles, timing, seasonals, Gann, pitchforks, volume, Fractals, RSI, stochastics, overbought/oversold (this is a good one--the stock indexes, currencies and cotton for example everyone said were overbought and topping in February and March this year). Look at what they did. Needless to say, I don't pay any attention to this anymore either, etc., etc. The list goes on to infinity almost. I went back to the basics. I went back to simple chart patterns, (a simple moving average and trendline now and then for a visual aid.) I came up with a low risk money management plan and put it together with trading with the trend and, presto, an effective and time tested trading plan. The plan is simple and has worked since trading began and will last me a lifetime. What a relief not to have to spend countless hours every night trying to find a new way to trade. I am sick and tired of that after 7-years. I believe at becoming an expert at one stock or market and its behavior and then putting all your skills and energy to work in a concen(traded) manner. Get good at that market and trade the heck out of it. Increase your size over time and you'll make more money with less effort. There are lots of professionals that do this. Look at some floor traders or locals that stay in the pit for many years trading one market exclusively. One thing that I have learned this year, is that I am trying to cut back on the number of trades I take and be more selective and not trade in congestion as much as I did before. I miss some good trades out of congestion, but I save myself a lot of mental energy, buy myself some more free time during the day, and get better and more profitable trades. My attitude is changing now to one or two good trades, and that is all I need to make my week ( a triple or a home run, so to speak). There are plenty of them during any given week. Trading is fun. Once you have a method and money management in place, it allows you to concentrate on trading and not on searching and researching. That gets old and frustrating. Make it your goal to find a simple method for next year. One thing that you can hang your hat on will last you a lifetime. Trading is simple. Remember that it's the Execution or Implementation of your trading plan that is the bigger challenge. Most people make finding the method a big challenge. That is because there is so much junk thrown at traders. They feel like a child in a candy store and have to try every doodad in the place. When they are done, they are sick and never want to see another candy store (trading gizmo) again. They could have had the plain piece of milk chocolate at the front of the store (simple method price patterns) which would have done everything they desired and fulfilled all their needs. I wish to all a great new year. I hope some will be able to end their journey in search of the holy grail or indicator that will turn their life around. Search for simplicity. You will be surprised what has been right under your nose all the time, right there in front of you on the chart or price bars. Pay attention to what they say...they will tell you everything. You need to listen and get to know them. It can be that simple. "
Good words above, however, the author of those words could not follow his own advice. RS of Houston = "Successful Anonymous Trader"
I don't have a specific link, but I was a subscriber at the time and I saw the whole thing play out. Way back when...there was a commodity newsletter that was mailed out called CTCR. http://www.ctcr.investors.net/reports.html S.A.T. showed up in the newsletter and described his method - in the spirit of helping other traders. Naturally people wanted more details of the method, he gave a few more tidbits and then stopped contributing. S.A.T. and CTCR attempted to package the method but the deal fell through. S.A.T. eventually packaged his method and offers "training" to this day. I'm sure if you dig through the CTCR site you'll see some references to S.A.T.
silvermotion: since the OP hasn't reposted I'll back-at-ya your blanket statements but don't want to sidetrack the thread into an EW argument, the OP may indeed know EW "you can completely disregard it [EW] when using fibs Nobody can argue with a fib retracement, the line is there at a precise value. Everyone looking at the same chart should be able to agree on the fibs, while with Elliot Waves . . . everyone will see something different." EW is the only theory attempting to describe Price Movement in total providing examples of the major Price formations expected to be seen hindsight is of course a de facto function of much human thought, but, a tool of EW used by waiting for a formation to evolve and complete sufficiently to identify what's occurring and then entering the trade it's via EW that foresight comes to the front with the use of fibos, Correction, Retracement and Projection fibos, but the fibo is a measuring tool, how it's applied depends on the user, consequently 'everyone' does not apply the fibo in the same way, and from my pov, often applies it incorrectly I can't imagine using fibos without 'my' understanding of EW, but it's an acquired skill a fibo chart from the OP is required