The concept lying behind this post is how to trade with Elliot waves and use it to our advantage, with simple known techniques. Many will have doubts on how Elliot Wave count is done.It's as simple as 1-2-3, I will explain step by step. This is gonna be Learn n Practice post, so with each step mentioned, you draw & analyze along with Me, So that you can learn more efficiently. Why I do this ? I'm completely loaded with pings on how to be successful & Nifty trade ideas boosted it up & All are very eager to learn, I really appreciate their effort to learn instead of losing money by taking Risk. So here it goes... I'm gonna share everything from Now on, to help every individual who aspires to taste success in trading...
Very Important Step : Keep your charts clean. Remove all indicators, just keep candles only. We rarely use any indicators ( that's My Style ! ). Only Candles are Enough !
Step 1 : Open TechM & choose 1h charts...
Just to make sure,Wiped your charts clean ? No, Indicators right ? Lets Proceed...
Step 2 : Take a look at your left pane, there are awesome tools from tradingview & Click on 6th icon & choose Elliot Impulse Wave (12345).
Step 3 : Identify any Swing High or Swing Low, Here our starting point is 512's(approx) @ 26-Jul-15 {Make a click with Elliott wave tool}. Why this point, not some other point you may ask, For Learner's easiness & to avoid confusion I keep it simple, so lets proceed.
Step 4 : With Elliot tool in hand, all we need to do is identify & click on Swing Highs & lows alternatively. So, next swing low 476 {Wave 1}. Great ! You have drawn Wave 1 Successfully. Kudos to You :)
Step 5 : Next swing high 509{Wave 2}, next swing low 448 , next swing High 483 {Wave 4}, Final swing low 449 {Wave 5}.
Step 6 : Now check rules of Simple Elliot waves. Below rules are not perfect elliott rules, these are what I use. The 5 primary rules I use are below :
6a) Wave 2 Should not retrace fully over Wave 1
6b) Wave 3 will be Longest {minimum over 161.8% Fib extension of Wave 1}
6c) Wave 4 should not retrace more than 50% of Wave 1 {Not Elliots, just My Style of Filter}
6d) Wave 2 or Wave 4 should not be longer than Wave 3
6e) Wave 5 should be almost equal to Wave 1
Step 7 : Check rules mentioned above & if everything matches... Awesome Guys... You have drawn Elliot waves successfully. Kudos & Appreciate yourself :)
Now analysis part,
We have previous support in 448 zone right ? So possible Double bottom in same zone ? Yeah, it can happen. So ideal to get long on TechM with Elliot completion & Double Bottom if there is Bullish confirmation. Absolutely, sounds like we got Plan. Thats it..it's so simple !
I have marked rectangular pattern around wave 2 & its breakout and aggressive setup on Wave 3 end to catch wave 4, if I go on explaining past... I can do all day...But Past points & successful trades are worthless I feel. So straight to what's happening now...
I don;t trade sharks alltime, so I drew that just for identification purpose here.
I cut short this analysis part bcos There are lot of Sunday & Weekday Specials to come.. From simple candlesticks to Complex Elliot's,analysis... Everything with complete details from Patterns to Strategies, to make your trading career & life Successful :) On Fun Note : I hope other author's won't be in hurry to get ahead of Me in sharing Strategy's & Patterns setups. Even if they do what you get here will be Unique, I assure :)
I don't want you guys to lose money, like I did some years before around 2009's. Thats why I share these to help you guys & to protect your hard earned money.
Open charts, draw Elliots step by step on every chart , today is Sunday, Practice Hard. Don't say excuses - as you got movie to catch, got to sleep in afternoon, Losing Money will give you sleepless nights which is worse. So its good to learn n practice before trading.
{if there are typo's/errs bear with Me}
Very Important Step : Keep your charts clean. Remove all indicators, just keep candles only. We rarely use any indicators ( that's My Style ! ). Only Candles are Enough !
Step 1 : Open TechM & choose 1h charts...
Just to make sure,Wiped your charts clean ? No, Indicators right ? Lets Proceed...
Step 2 : Take a look at your left pane, there are awesome tools from tradingview & Click on 6th icon & choose Elliot Impulse Wave (12345).
Step 3 : Identify any Swing High or Swing Low, Here our starting point is 512's(approx) @ 26-Jul-15 {Make a click with Elliott wave tool}. Why this point, not some other point you may ask, For Learner's easiness & to avoid confusion I keep it simple, so lets proceed.
Step 4 : With Elliot tool in hand, all we need to do is identify & click on Swing Highs & lows alternatively. So, next swing low 476 {Wave 1}. Great ! You have drawn Wave 1 Successfully. Kudos to You :)
Step 5 : Next swing high 509{Wave 2}, next swing low 448 , next swing High 483 {Wave 4}, Final swing low 449 {Wave 5}.
Step 6 : Now check rules of Simple Elliot waves. Below rules are not perfect elliott rules, these are what I use. The 5 primary rules I use are below :
6a) Wave 2 Should not retrace fully over Wave 1
6b) Wave 3 will be Longest {minimum over 161.8% Fib extension of Wave 1}
6c) Wave 4 should not retrace more than 50% of Wave 1 {Not Elliots, just My Style of Filter}
6d) Wave 2 or Wave 4 should not be longer than Wave 3
6e) Wave 5 should be almost equal to Wave 1
Step 7 : Check rules mentioned above & if everything matches... Awesome Guys... You have drawn Elliot waves successfully. Kudos & Appreciate yourself :)
Now analysis part,
We have previous support in 448 zone right ? So possible Double bottom in same zone ? Yeah, it can happen. So ideal to get long on TechM with Elliot completion & Double Bottom if there is Bullish confirmation. Absolutely, sounds like we got Plan. Thats it..it's so simple !
I have marked rectangular pattern around wave 2 & its breakout and aggressive setup on Wave 3 end to catch wave 4, if I go on explaining past... I can do all day...But Past points & successful trades are worthless I feel. So straight to what's happening now...
I don;t trade sharks alltime, so I drew that just for identification purpose here.
I cut short this analysis part bcos There are lot of Sunday & Weekday Specials to come.. From simple candlesticks to Complex Elliot's,analysis... Everything with complete details from Patterns to Strategies, to make your trading career & life Successful :) On Fun Note : I hope other author's won't be in hurry to get ahead of Me in sharing Strategy's & Patterns setups. Even if they do what you get here will be Unique, I assure :)
I don't want you guys to lose money, like I did some years before around 2009's. Thats why I share these to help you guys & to protect your hard earned money.
Open charts, draw Elliots step by step on every chart , today is Sunday, Practice Hard. Don't say excuses - as you got movie to catch, got to sleep in afternoon, Losing Money will give you sleepless nights which is worse. So its good to learn n practice before trading.
{if there are typo's/errs bear with Me}
Comment:
There is slight confusion over Wave-5 ending, though I previously mentioned Wave-5 can extend if it breaks below 448 , in other scenario if double bottom happens, wave-5 will be ending with Double bottom
If you have slightest doubt, never mind how silly it is... Feel free to leave a comment, I will solve as soon as possible...
Happy Learning & Happy Sunday :)