Modern Elliot Wave trading using Elwave. - Page 21

GreatYves · #**201** (**permalink**) 11-04-2009, 12:13 AM

With bars set at 2400, elwave wave count seems to make more sense, here some charts made of daily mt4 history files.

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lalthan · #**202** (**permalink**) 11-04-2009, 12:56 PM

Good idea. You guys confirm the number of records and I'll join in. Anyway, we are not looking at the super-cycle/grand-cycle which is too long a time frame for a trader (we are not investors,are we?

).

Quote:

Originally Posted by GreatYves

After reflexion, Elwave settings for forex should not be the same as stocks or indices, since the price variation is much more limited, i mean a pair is usualy trading within a certain range. like USDCAD as always been trading somewhere between .65 cents to 1.45$ at most, (i think!)? gbpusd from 2.45 to 1.04 so these figure are relatively in a close range. Compare to a stock that can range from a few cents to many hundred dollars! Base on that knowledge maybe the time span (number of bars) can be much lower, say the last significative swing, from june 2001 so about 8.5 years or 8.5 x 260 = 2210, let's say 2400 bars would be enough, or that would be 100 days if you analyze an hourly chart. Now a consensus would have to be done on that figure, so we all have the same output. What do you think guys?

lalthan · #**203** (**permalink**) 11-08-2009, 06:42 AM

Hi guys,
Long silence from you guys. I've been rechecking the reason why the wave counts are different on the charts.
I realised that if I go into the different alternatives presented in the wave tree, I could locate the same kind of wave structure that is available on your analysis. However, the larger time frame labels are slightly different.

This leads me to believe that as long as I know the next two higher time frame direction, it does not matter whether it is 1 or a, 2 or b. I can always enter the trade and as long as I know my risk to reward ratio and then apply it with a logical stop loss and money management, the profit will always be there.

Very nicely explained here: Elliott Wave: Introduction