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 [Pattern drawing tool] & 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 [Wave 3], 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}
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Looks like No space...[Continuation ]
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 :)
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There is slight confusion over Wave-5 ending, though I previously mentioned Wave-5 can extend if it breaks below 448 [Standard elliot waves], in other scenario if double bottom happens, wave-5 will be ending with Double bottom [Elliot variation]
thanks for sharing this .... waiting for more more learning tips from you..
InsiderB
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Sure, more to come... Stay tuned :)
rajesh2467
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InsiderB, how to identify, which wave (1/2/3/4/5?) we are currently addressing in order to draw EW? I mean, from
where exactly to start drawing?
InsiderB
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The Highest Swing High or Swing Low will be considered as starting points most of times. Sometimes people start EW from swing high/Low within middle of leg [02-08-16, 9:15 candle High], we can't disapprove that as wrong, but can be drawn better if started at [26-07-16 candle]. In Elliott's wave count its individuals perception to draw within their rules. I hope this helps you !
rajesh2467
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yup. thanks. and what about the a/b/c small waves after 5th wave?
InsiderB
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I have planned it to take step by step, corrections have few variations, will post it out in future.
rajesh2467
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OK. One step at a time...that's very thoughtful of you. Looking forward to forthcoming posts. Thanks.
InsiderB
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Sure, thanks for the support !
walter0202
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Just one doubt, your wave 4 goes in the territory of wave 1....breaking the cardinal rules of EW
InsiderB
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Yes, I do agree, thats why in description I mentioned it as My Style of Filter. For example, lets consider simple example of Bollinger Bands, Bollinger specifically mentioned (20,2) is valid settings for his bands, But we tweak n play around for our benefits, to maximize our success. The same I did here with Elliott's. But I do agree its against Elliott rule as its similar to tweak settings of Bollinger :)