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Elliott Wave

How to Trade Elliott Wave ? In Elliott Wave theory the 5 wave move in the direction of the trend is also called motive waves, while the 3 waves corrective move against the 5 wave move is also called corrective waves. This is quite useful because we can now break any price trend movement into this basic 5 – 3 wave pattern. Knowing that each impulsive and corrective move is a series of waves oscillating up and down we can conclude that we can have waves within waves. This means that a five wave sequence in one-time frame might be simply just the first wave in a longer time frame. In other words, this is simply confirming the fractal nature of the markets theory. Let’s lay down some of the rules of the Elliott Wave strategy that can assist us in determining to find good Elliott Waves entry points. Elliott Wave Strategy Rules The Elliott Wave strategy needs to satisfy and abide by some strict rules in order to validate the 5 wave move. The three basic rules Wave 2 never retraces more than 100% of Wave 1. Typically, the retracement is between 50% and 61.8% of wave 1. Wave 4 never retraces more than 100% of wave 3. Typically, declines between 38.2% and 50% of wave 3. Wave 3 always travels beyond the end of wave 1 and it’s never the shortest one; Wave 3 will normally extend 161.8 x wave 1. My favorite way to play the Elliott Wave strategy is to let the first 4 wave movement unfold and then to find good Elliott Wave entry points near the end of wave 4 in an attempt to catch the last wave of the entire 5 Elliott Wave sequence. If wave 3 is the longest wave, then wave 5 will roughly equal wave 1. Wave 2 and Wave 4 will alternate. If wave 2 is a sharp correction, wave 4 is a flat correction and vice versa. After a five Elliott Wave sequence is completed the ABC corrective waves usually end in the vicinity of wave 4 low point. Step #1 Wait until you can spot at least a 3 wave Elliott Wave sequence Step #2 Sell between 38.2% and 50% Fibonacci retracement of Wave 3 Step #3 Place the Protective Stop Loss few points above the Wave 1 Ending Point Step #4 Take Profit when Wave 5 is equal to Wave 1 or when we break below wave 3 Conclusion Billionaire hedge fund manager Paul Tudor Jones is well-known for being an Elliott Wave practitioner. If the 120th richest person on the Forbes 400 list is using the Elliott Wave strategy you should not be the fool who ignores it. The Elliott Wave strategy has stood the test of time and if you’re just getting your feet wet in the trading business this is definitely a good starting point if you want to build a fortune.
NSE:NIFTYEducation
by Fibonacci_Club
1
ADABTC Technical Analysis based on Fibs and Elliot Wave theoryThis a Technical Analysis for ADABTC chart on 4 Hour timeframe. It has completed impulse wave 1 and 2. Wave 3 which is usually the longest and strongest wave is just started. Based on the Fib level expected target is somewhere around 5700 to 5800 Satoshis (Taking this a bit on lower side) See the corresponding Fib level as well. Wave 4 retracement may be around 5000 Satoshis. RSI is showing bullish momentum with higher lows. Please see the red trendline. Please also see how 55 EMA has just started providing support (Blue Line) This is purely for educational purposes.
Education
by krutarth
AUDUSD - Inverse Australian Dollar -Mirror Image for USDINR20:55 Hrs 17th Oct2017 AUDUSD @0.7830 USDINR@65.01 Wish you a happy & prosperous diwali to all of you & your near ones. May Goddess Lakshmi bless all. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- AUDUSD Running with 200+ pips in back to back action for Australian Dollar in simple impulsive count 1-2-3-4-5 Moving into 5th wave@0.7826 for the sequence from 0.8125 Highs. Last Update on AUDUSD Inverse Australian Dollar 2nd chart - Inverse AUDUSD & 3rd Chart - USDINR - You will say what a correlation Australian chap had with Indian counter part - They almost turned together for upside move on 8th Sep2017 & Indian markets were surprised for that explosive rally for Dollar Rupee which was to follow from 63.75 In between holiday on 2nd October for Indian markets missed the correlation with inverse AUDUSD but no worries they are brothers for a while & caught up again on 13th Oct2017 - where USDINR made low@64.75 Can they move together for next few days. If this happens, can dollar rupee go beyond 66 levels. Let us wait & watch. In previous update for dollar rupee - 64.80-65.20 was the support range from 66 highs & came true on 13th Oct2017 bottom@64.75 - closing above 65 - gives hope to dollar bulls. Last Update on USDINR - Dollar Superman -Up -Up & Away from 63.55 to 66
Education
by WaveTalks
3
Bharti Airtel - Falling from 438 to 395 - Game of patience Someone rightly said - " Why patience isn’t just a virtue in investing, it’s a necessity for Trading" if you want to survive in the markets for long term. If I Can’t Have You Right Now, I Will Wait, Dear Few weeks back it made a high@431 - had started falling but it was not a convincing fall to 403 & pushed upside slightly above 430 levels making new high@438. So, I am asking a question to myself is this the fall which we were waiting for a long time almost like a year as mentioned below in previous update & we have started the same by falling from 438 highs to 395 low in the last two weeks combined. Update on 1st Jan2017
NSE:BHARTIARTLEducation
by WaveTalks
11
Educational 11: Elliott Waves + Butterfly Pattern Confluence In the above chart, I have showcased a confluence or relationship between Elliott Waves and Harmonic Patterns. Where I have mentioned and pointed out time where they confluence and provide us a successful trading opportunities. Such confluence is simple to understand and provide a great reward over risk by initiating in them. I have attested below edcuational chart of Butterfly Pattern and also a confluence between Elliott Waves and Head n Shoulder pattern for further reference. I would appreciate your comments, charts and opinion on the same. Regards, Neetesh Jain
FX_IDC:XAGINREducation
by NeeteshJain
12
Educational 08: Head N Shoulder & Elliott Waves RelationshipThis is an interesting educational post which I observed last week while analysing charts that were showing Head n Shoulder Patterns. I thought of relating it to the Elliott Waves Theory and found out some similarities in their pattern formation. I have displayed both the pattern formation and indicated WHEN & HOW TREND CHANGES once such patterns are formed. H&S is a major reversal pattern and it is similarly indicated in Elliott Waves while showing a complete wave cycle where impulsive and correctives waves are added. Key Similarities: 1. Left Shoulder of H&S pattern is compared to Wave 3 of EW 2. Head of H&S is compared with Wave 5 of EW 3. Left Shoulder is compared as Wave B of corrective Elliott Waves 4. Target of H&S is indicated as a completion of Zig-Zag Correction in Elliott Waves Theory This make easier to indicate patterns and provide extra confirmation with other technical patterns. This makes our convinction strong and also make us confident to take informed decisions in the markets. I would appreciate your views on the above sharing, Thanks for support, Regards, Neetesh Jain
NSE:BANKNIFTYEducation
by NeeteshJain
29