This video offers a solution to the challenge traders face with Elliott wave count and the benefits of Elliott wave trading.
Each time you pull up a chart of any stock, currency pair or any instrument, it tells you a story about the buyers versus the sellers. Did you know that? It does this in a specific language that only the experienced traders understand. Sadly, this one specific language could be interpreted in as many languages as the number of traders in the trading world. Little wonder therefore why there're so many trading strategies.
After about 16 years of trading, we can confirm that the one of the most reliable and consistent strategies that really work is the Elliott Wave Principle. Ralph Nelson Elliott, a 19th century American Accountant( 28 July 1871 – 15 January 1948) , recognised that the market moves in waves. He describes these waves in 2 phases-the progressive or motive and the corrective phase. That remains true to date. Whenever you look at a chart be it historical or live, you are either looking at the motive or corrective phase of the Elliot Waves. This ,in our opinion, is the best trading method. That's why we've developed Elliott wave trader based on the Elliott wave principle.
Elliott wave has 2 phases- the motive and corrective phases.
The motive phase has 5 waves, namely, wave 1,2,3,4 and 5. In the motive phase(which we also called progressive ), waves 2 and 4 are pullbacks. Elliott wave trader is based on this knowledge.
In the corrective phase, there are 3 waves-A,B and C.See the photo above. This could represent the ranging or sideways markets on a chart. The corrective phase is less predictive and can be hard to trade. Avoid trading it if you can.
Without a single doubt, if you can confidently master these 2 phases and their waves, you will be profitable in your trading almost always.
Both the concept and waves are easy to draw on a teaching board. The difficulty about the Elliott wave is the ability to pull up a live chart and tell confidently which of the 2 phases and wave number you are looking at. That’s the real difficulty. I’ve listened and watched many teachers of Elliott Wave but many are unable to demonstrate it on a live chart with the level of confidence they exude when teaching. That’s why you see those who try to teach the principle only draw the waves nicely on the board but may not pull up a live chart to demonstrate it to you. That’s because it’s tricky, hard and can be controversial as well as subjective. Anyone who can simplify this for you, stick with him/her because that’s where the money is.
Above we advise that you stick with anyone who can simplify Elliot Wave on a live chart for you. That's because that's where the money is. You can sign up today and test the Elliott wave trader today to confirm this. It's free for 2 weeks.
If you have anyone to show you how to recognise the phases and wave numbers of the Elliott Wave, aim to trade wave 3. From the 3 Elliott wave rules, wave 3 is the longest. So if you know the phase and wave number you’re looking at sit back, relax and wait for wave 3. You can trade wave 1,3 and 5 and be profitable but the main money is in trading wave 3. See photo above.
There is a simple way to recognise the phases and wave number.
Hint: Out of the 8 waves in the complete Elliott Wave Pattern, the wave that is most likely to follow a break out from a position of over bought or over sold zone is Wave 1. Therefore, if you can identify that, keep an eye on the pull back(wave 2) and enter a trade at the beginning of wave 3 when the pull back ends. It's that simple and rewarding.
Try that and see if you’re able to recognise the phases and waves with ease. If not, we’ve developed an MT4 software that can ease the identification of the Elliott Wave phases and waves. It has some algorithms that are able to search the markets, analyse the trends, identify and count the 8 waves internally. More importantly, the app sends out signal notifications to users to trade Wave 1,3 and 5 of the motive phase, and occasionally, any one of the ABC of the corrective phase if confirmed
Trust us because if this wasn’t true, WE WILL NOT MAKE THESE CLAIMS ABOUT EWT.T he taste of the pudding, they say, is in the eating.So sign up, try the tool for 2 weeks and then decide to stay or cancel, no charge for you.Finally, trust us because we’ve given you 2 weeks to try the tool FREE OF CHARGE and make up your mind. Honestly, it can’t be fairer than this.
We trade every day with this tool. We’d never recommend a product we wouldn’t use ourselves.
Want to test the Elliott Wave Trader?
Elliott Wave Paterrn Versus Harmony Pattern
We know there are some traders who rely solely on harmony pattern in their trading. That's okay as long as it gives them consistent profits.
However, the turth be told. Elliott Wave is the granular components of the harmony pattern. Harmony pattern is a block of the Elliott Waves. They group to form the butterfy pattern.
So in a sense if you trade the Harmony pattern, you are actually trading the Elliott Wave though in a different way.
Why is Elliott Wave Trading Important?
When correctly counted and applied, EW trading is most consistent because
1) It identifies the TREND
2) It shows pullbacks
3) It identifies the end of a trend
4) It shows the resumption of a trend
5) It's a high probability set up
Where to begin an Elliott Wave analysis is the single most important decision you can make before you start a wave count. This is true whether you count manually or use the automatic wave counting tools. And, it’s the most important parameter that that could determine your win or lost trade. This is an aspect of Elliott Wave analysis that many new traders struggle with or overlook completely. It’s also one of the most common points of confusion for those who are new to Elliott Wave Principle.
If you grab one simple trick from us, perhaps this might help you answer this question with ease most of the times. You’ll generally get the best results by starting counts at the beginning of a specific and meaningful market turning point, rather than in the middle of a market rally or decline. Out of the 8 waves in a complete Elliott wave pattern, the one wave that’s most likely to start off from over-sold(for Uptrend) or over-bought(for downtrend) zone is wave 1. If you can identify this breakout point, you should be fine with the wave count. If you struggle, one option for you would be to trade with our Elliott Wave Trader. It does this seamlessly behind the scenes and sends you a trade alert when a potential wave has been identified.
How To Receive EWT
Once subscribed, you’ll immediately be sent an email with a template + a Guide to download. You’ll need a good PC, a good internet connection and an MT4 account.
Note: Account opening on MT4 is always FREE.
From the day of your subscription, you will be given 2 weeks to try the tool. If you are unhappy with the performance, you must cancel your subscription before the 14th day.Once billed, there will be no refund. That’s why you’ve been given 2 weeks to try the indicator and make the judgement before payment.
EWT stands for Elliott Wave Trader. It's an MT4 software that's stuffed with a few algorithms. These analyse the forex or stock market trends for potential portions where the 3 Elliott rules are met(see photo above). Once identified, the tool will count the wave internally plus send you notifications to trade wave 1,3 or 5. Ocassionally if any significant wave is identified in the corrective phase, it may create a trading opportunity for you.
It's a semi-automated. It will send you the entry notifications. You will need to open your chart manually, do a few checks and open the trades and set your Take Profit (TP) using the TP rule in the user manual.
Ideal Timeframe: H4 timeframe or higher
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