I thought the way the waves worked was you predicted movement and then waited until that move was done and then predicted the next movement. I don't have much experience with waves, so I'm probably wrong. So you draw a new version each week based on the new data (that week's data), because it is by definition "more accurate" right? How do you use these charts in your trading?
To answer your questions: 1. Yes, I update the counts every weekend based on the movements/patterns developed in the past week. 2. Good question! The beauty of trading with wave is that Elliott Wave Principles have some rules that you can use to validate the current wave count. I trade with those rules, and then it's very easy to know where the stop order needs to be placed for the current wave count.
Can you post some example charts with this? I'm curious to see it. I appreciate your time explaining all of this to me.
I don't have example charts right off the top of my head now. But here is a wiki link and you can find the definitions and rules of wave: http://en.wikipedia.org/wiki/Elliott_Wave_Principle It also has a example of using wave to trade from sakuragi_indofx, "Trading never been so easy eh,". Basically, it says that the wave-4 and wave-1 will not overlap, so you know where to place the stop order if that count is valid.