Elliott Wave - Do you use it?

[Kauri]

Look here:

http://www.financialsense.com/fsu/editorials/russo/2006/1115.html

motorway

Interesting labelling....


Everyone seems to get hung up on using E/W to predict price targets, I guess it may be a hangover from Edwards and Magee, Bulkowski, Guppy etc teaching specific price targets derived from patterns. In my trading at least E/W is used to identify a trend and establish my current position in the trend. Possible pivot point areas via Fibonacci application are not signals for entry/exit, rather they are warning signs that a change may be imminent that requires confirmation. Be that a vindicator, candle pattern, volume characteristics or tarot cards.
Coyotte, how would Guppy handle his trend trading channels in log scale??

 

[coyotte]

He doesn't that I'm aware of.

Guppy's mainly 3- 10 days with patterns and targets or around a month with GMMA's.

GMMA's can be used for longer terms but Guppy's basically about turnover.

Guppy's advice on trend lines though is the points of reaction and new trend lines for short term trend changes. eg: points where trader's activity starts, within the current trend --- you can also pick this with GMMAs - eg: Traders start, back off -- then start again -- intros enter and target traders leave.

Cheers

 

[Kauri]

Coyotte,
As you can see in the charts from Motorways linked article the E/W waves are still there, the only thing that changes is the price actions percieved position relative to the channells. Once again the channells are used to predict termination points for the waves, seems there is a prediliction for prediction, in my view not really necessary.
Cheers
Kauri

 

[coyotte]

Apart from the Waves are EW patterns different to the run of the mill T/A patterns or do you use traditional patterns along with the Waves?

The reason I like Guppy's Target Trading methods is much the same as EW rules I suppose -- SP either does or it doesn't --- when you reach a Guppy Target that's it you're out and into a new trade, what happens to the SP from that point on is not your concern -- you've sold the item as any retailer would do.


Cheers

 

[coyotte]

Appears you answered my question before I posted it Kauri.

Thanks

 

[Kauri]

Coyotte,
I traded triangles, flags, cups etc before E/W. Have found that by identifying where they are located in the trend helps make a discretionary decision on whether to trade or not. Have also used E/W trend position to let my profits (when I have some) run as opposed to having a set target.
Cheers
Kauri

 

[It's Snake Pliskin]

Re: Elliot Wave

Doc doing the same and havent had a chance to see how Nicks charts have performed.

He has been studying Elliot intensly since 96 I believe and from what I see very good at labeling the legs.
Elliot is a very good form of analysis I think for shorter term trading but hard for most to get their head around the fact that the leg your trading could go pearshaped and completely bugger up your count.

To be proficient will mean years of study.

Dr Jeff Eiseman(From reefcap) used Advanced Get for many years and found the labelling even by the software to be annoying.Youd be trading a wave 3 when price action indicates that the 3 wave A,B,C correction is infact not over but developing a 4th down leg in perhaps a 5 wave correction.(as an example).He has given up trading with it for consistant profits.

Nicks service will even track an index or individual stocks at $15/chart.

tech

Tech,

Elliot wave is supposed to be a study of psychology, specifically greed. Therefore it's very subjective. If you could gauge the level of confidence/sentiment, you'd probably do better at labelling the wave counts yourself. I also find using advanced get troublesome and would rarely use it.

by DTM.

Considering the comments by two who have used it and know, what factors influenced your buying of Advanced GET? Also how has it been in practice?

The EOD GET has the scanner in it.
Just bought it at $3720

I didn't realise it was so expensive. I am truly shocked at the cost of some software products.

 

[It's Snake Pliskin]

Hello Snake,

Have a deep look into it mate, but ask this of yourself, if it works why DO those that push it need to?

Its like a prognosis of the maybe.

Cheers Bob.

Bob,
I have been digging deep sir.
About 35% of all trends etc. will constitute a universe of EW tradable opportunities. (software puts a count on everything

There is some positive use for it if it understood from a point of knowing it's limitations. Still early days though.

Snake

 

[It's Snake Pliskin]

Re: Elliot Wave

Tech,
by DTM.

Considering the comments by two who have used it and know, what factors influenced your buying of Advanced GET? Also how has it been in practice?


I didn't realise it was so expensive. I am truly shocked at the cost of some software products.

No comment tech?

 

[tech/a]

Snake sorry just saw the post.

I'll answer in a while bit busy.
Learnt a lot though both on the positive and negative--and there is negative.

 

[tech/a]

Snake.

Maybe worth having an Advanvced get thread.
If there is enough interested I'll go into more detail with my findings.

 

[tech/a]

Have found that by identifying where they are located in the trend helps make a discretionary decision on whether to trade or not.

Just saw this Kauri.
Very important no matter what analysis you are using.I can see you are using this to advantage in both entry and exit.

 

[Hudlass]

........ I would however like someones opinion on the wave count on the ASX 200 ........

Elliott Wave on the XJO can be found here.