# Marketwaves....Understanding my  posts ...



## MARKETWAVES (20 June 2005)

*The purpose of this information is to illustrate the trading of  Elliot Wave methodology .  Combined  with  Fibonacci Retracement  levels   which  is  highly  subjective .....*
   To  become proficient in  Eliiott Waves  methodology , it  is an acquired skill through observation , time, and human behavior …

So , if you are the type of person who is always looking for what’s easier , then this may not be for you . It is this very attitude that’s basis of so many people who try their hand at the  Elliott Wave method.

  If you  do not  trade  the Elliot Wave  theory  and  just  as  important  have  an  understanding  of  Fibonacci Retracements  , then  theses  posts  will  not  make  much  sense  to  you ....
You  will  need  to  read  about  Fibonacci  Retracements in  order  to truly
understand    the  levels  themselves ,,,, Read  especially  about  whats called  THE  GOLDEN  RATIO . With  this understanding  you  can  truly  uderstand  where  to  place  stops and  control  you  risk  when  the    particular market  moves  against  you ...


*Not  all  levels  hold up as  support .... again , it is  subjective  ......*

 That's  where  the  use  of  *Risk  to  Reward  * comes  in  because    it  is  not  100 % ....
In fact no trading methodolgy out there is 100  % ..

 *It's    all  about  probabilty....*


What I am showing  you in these pages that  are  posted did not come easy . It's  taken a  liitle over  2  years ..   to  do  ......

Bottom line , if you  do not trade Elliott Waves theory and  have  no  understanding  of Fibonacci  Retracement  Levels you  are  lacking  information  to  truly  appreciate  the  posts  ...

Weekly and Monthy charts are more significant and more Important than the Daily or Intraday charts … The main reason why this is true is because all the market noise is in the day charts and the intraday charts …. They gap up or down on the open which is not that apparent on longer term charts in comparison . It is just the way that it is ..


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## tech/a (20 June 2005)

Waves.

Your taking the veiw that all have no idea of the application of Elliot Wave theory in combination with Fibonacci.As such your also intimating that it is not possible to understand your analysis unless you have a grounding in both fields.

I have been studying technical analysis for 12 yrs.

The Golden Ratio or Mean is .618 found mainly in nature in the form of spirals--Snail shells,Sea Shells,Even found in Galaxy spirals.

The labelling of Elliot is a dynamic work in progress which at the final point of labelling can change if price action goes beyond a suspected support or resistance area--- causing re ladelling to occur.-----This can be frustrating for the analyst as its not set in stone----no analysis is until price unfolds over time.

*This STILL doesnt mean you cant show a possible entry point--- a suggested stop and once the trade is underway---IE the Wave count is confirmed---an exit projection.*

*Your NOT alone in understanding Elliot and Fibonacci.I dont use it---I and others here are interested in how someone who  * *supposedly does use it for trading * *actually implements their trades.*

*Waves if you dont actually TRADE your charts but rather analyse for interest and discussion only ---PLEASE let us know-----my requests then will have been unreasonable.*

I do know of very good exponents of Elliot who DO trade with it and if you dont trade it can offer up some of their charts and TRADES for discussion----Waves this is your baby so I've kept out of Elliot,Fib etc.
I'm sure some GANN will follow from someone like Battman as time goes by---Dont use Gann either.


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## MARKETWAVES (20 June 2005)

Heres   a market  that  i  am  curently  analizing   


 *Live  Cattle ......*


   I believe  that  it   has  sold  off  into  a  50 % retracement  level 
and  stochastic  oscillator  is  in  the  oversold  territory  on  the  long term  weekly   charts ....

*Now  please  undrstand  this  level  may  not  hold  as  support * 

     again  ,  this  methodology  is  subjective  .....
 SOMETIMES  IT  WILL  HOLD   AND  OTHER  TIMES  IT  WILL  FAIL  


   The   entry  on  this  is  up  to  you ...  I am  just  attempting  to  show  where  it  could  start  to  turn  around 


The   Red  dots  ,,,,,   
are  an  attemt  to  show old line resitance   becomming  new  line  support


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## MARKETWAVES (20 June 2005)

Here  is   an  example  of  a  head  and  shoulder 


  Text  book  ...

  All head  and   shoulders  patterns  have a  target  or  ( objective )

   It is  this  objective  target  that  is  to  be  used  as  a  place  to  exit .



   Text  book  says  enter  at  the  break  of  the  neckline .....

  Fibonacci  say  buy  at  the  right  shoulder  before  it breaks  the  neckline   with  a  small  stop  under  the  right  shoulder  ....

*take  your  pick //*

   I/m  on  the  fibonacci  side  ...  I  buy  support .......
                                           ..... I  don't   buy  breakouts of  neckilines  
  It's  to  late  then ........


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## tech/a (20 June 2005)

Ok.

*Then its clear now that your charts are for discussion and general comment,entry is up to the individual as is exit and stop placement.*

Youve made it clear that chart interpretation is at times subjective and that wave counts may alter,and support/resistance levels may not be honored.
All of this would have consequences for the trader.Its those consequences I was hoping could be shown.

Failure of analysis is guarenteed no matter which type you use.The sooner traders understand ,accept and trade knowing this the better they will be in developing a profitable methodology.

Type of analysis (Elliot,Fibonacci,Darvas,Steidlmayer,Point and Figure,Candlesticks,Bar Analysis---etc) is only the tip of the trading iceburg---not the iceburg itself.

*Analysis itself is of little use without knowledge of implementation.
Implementation is of little use without knowledge of expectancy.*

Trade or entry of ANY business without knowledge of profit expectancy is financial suicide.
To analyse trades and or business with what if scenario's is fun and can be productive in our search for understanding.
Blindly entering into financial commitment with only part of the iceburg almost guarentees your ship WILL hit the rest of the iceburg and sink!

I think it VERY important that people UNDERSTAND this.

Waves.
Thanks again great charts and interesting analysis.Please keep it up.


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