Discussion in 'Trading' started by DEM BONES, Apr 9, 2011.
WHAT IS YOUR EXPERIENCE USING THE ELLIOT WAVE AND IS THERE A PARTICULAR BOOK YOU RECOMMEND?
The chance EW is right is not any better than reading the tea leaf ..
Elliott Waves were perfect 4 mister Elliott himself...
other than him I doubt it!
Give it a shot and see if it does something good for your trading results, in my case EW ended up useless.
Don't spend money on books there is a lot of free info on web.
There were software that took care of calculation and every possible scenarios and do not know if they still exist. look around before spending your hard earned money.
I don't know much about EW but I hear it's pretty awesome in hindsight, although you cannot predict when each wave will end in real time, so it's basically as useless as MACD or any other indicator.
EW is just like anything else, whether be indicators, price action or tea leaves. If you can make a trading plan with excellent money management and then stick to your well tested rules, it is better than having no rules.
I believe the more experience one puts into trading, even in areas that one might not have convictions in, more well rounded one can be and sometimes even find nuggets to add to whatever method they are using now.
EW premise is three impulse (trending) waves (swings) in one direction with two corrective waves (retracement) in between.
I find using a 20 EMA will define the first corrective wave, when price crosses the EMA.
EW many times makes unusual wave structure making it very tough during the market to find end of trends within one timeframe, but using larger timeframes and trendlines, I can see it a bit better. But just using nothing but EW in my work has never shown me to work well enough.
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