The problem with EW Rimtas is that there can and almost always is more than one possible wave count in play at any given moment.
Agree totaly. Just disagree that it is a problem. For me personaly it is an advantage. When trading, you keep in mind the specific price levels which when breached gives you an edge to manage your position properly and get out or add up depending which count is in operation.
I often see folks who set up stop levels just by a simple percentage, even when it is clear using EW that particular stock or market is in a corection and probabilities are in favor of your dirrection. They just get stoped out at the wrong levels just to see stock will rally after.
I like trading EW, which I do very rarely, because good setups are once or twice a year. So my trading style is slow-I start forming portolio which takes couple months and then just let it run, cutting out positions which do not follow the market. My last trade was initiated last year Nov-Dec, consisting of 12 Blue chip ASX stocks, and most of them I kept till APR-May, With TTS being the last stock to sell last week. WOW was the most and only looser, with 3% realized loss , but WBC, ANZ and BOQ were stars-managed to get out with no less than +25% from each.
I think we are heading into another buying opportunity, and I will start buying banks and commodity based stocks soon for one more trade this year(probably the last). The main reason is that commodities started a 2 year cycle up, and because Australia has commodity based economy, relief ralies in those markets will push All Ords up.
I personaly do not believe into a bear market from most recent 6000 peak, as most blue chip stocks are at new highs with incomplete wave structures and the only reason All Ords is as these levels is that Small Caps are dragging it down. Most Asian indices have incomplete bull structures as well, and expect a bear wave only because DJIA has an Ending Diagonal, whis also can be fake, just do not ads up. When bear starts, you can see this in ALL major world indices, like in 2007 or 1999-they all had complete wave structures, all aligned for a crash.
But **** happens. That's Why I like EW-it tells you when you are wrong. Other methods just don't give you an edge EW does. Let's say theoretically-you opened a short position based on most recent long term Gartely. let's say you have no idea what EW is. How and when do you know that particular Gartley fails? Without EW, there is no any way of knowing this unless you keep short right to the loss. That is the main reason I avoid any other quantitative methods.