Trading the Wave Counts from GET

Attached are the EW charts for our 5 currency pairs.

There is not much change in the Wave Counts.

EURJPY: Chart-wise, prices are likely to move up towards Wave [A] level. Aggressive traders can Buy into Wave [C].

EURUSD: This is turning Bearish as prices have now moved BELOW the 10 and 30d MA and more bearish candlesticks are appearing. Give it an Bearish Engulfing Bar and it will be ripe for shorting.

GBPJPY: This pair is getting tricky to trade for day trading. Although its Primary Trend is down moving towards Primary Wave [5]. During the day, it can swing from one end to the other and vice versa. I am Staying Aside for the moment.

The spread is around 10 pips and if your Stop Loss is 20 pips, it can be easily triggered as price movements for this pair are rather fast.

GBPUSD: Primary Wave [3] is gradually edging up. I am monitoring this pair closely for further improvement in sentiment before going in for a Buy.

USDJPY: Wave [C] has completed the first ABC wave count, and will be heading down. I am staying aside.

General: The only 2 pairs I am interested are EURJPY and GBPUSD and will be watching closely before moving in.

Lately I have turned cautious. During last month, a look at the chart patterns I can straightaway know whether there is a trading opportunity but these are harder to come by. Where in doubt, stay out – that is the motto.

Kenneth

(PS: The XP partition of my laptop has crashed and I am unable to use my Elwave 6.2 for a while until this problem is resolved.)

Attached Files

EW Charts 20091104.doc (553.0 KB, 12 views)

Too bad for your XP partition! I am now a Win7 lover! I strongly recommend it!

You are right about gbpjpy. I got stop 3 times on it since the start of the week. Now i go with my system that show me the short side, but it don't feel good..

The growing rumor of a sell off in stocks is hard to ignore. I wonder if the US and JPY would go up again in case of a panic sell off like last year. We could be in for another wild ride. But is another scenario possible? Could investors put their money into European bonds instead of the usual US bonds? We never know what would be the outcome of a panicked herd looking for a safe heaven. I wonder what the opinions of are readers on this mater.

Trading the Wave Counts from GET - EURJPY

Towards the evening (Malaysian time) I BOUGHT EURJPY at 133.90 and SOLD at 134.28 making a gain of 38 pips or US$417.00 within 2 hours 32 minutes.

Attached are the details of the transaction.

As mentioned in my morning's posting, EURJPY's Primary Wave [C] is moving up towards the level of Wave [A].

Kenneth

Attached Files

Intra Day 20091104.doc (71.5 KB, 2 views)

Hi, Joe44:

I am glad to learn your first attempt in day trading (although on a demo account) was an ideal hit by applying the Elliott Wave trading techniques you have learned from this forum.

I notice from your chart that (1) you entered at the completion of Wave 4, (2) you are using a vey fast time frame of 1 min and (3) you are also using Fibonacci ratio to assist you.

I wish you continued success in your demo practice on Elliott Wave trading techniques and that at some point in future you will share with us your trading experience, both success and failures, so that we can learn together.

Regards
Kenneth

With my new found understanding (:-)), EURJPY has undergone a complex Wave 4 correction and entering the 5th.

On EURUSD, en extended 5th of the 3rd has completed and we are actually entering the 4th, with an initial target of 1.45.

Have noticed this before as well- GET's counts seem to be one count ahead, as in giving a 5 where it should be 3.

Trading the Wave Counts with GET

Introduction:

It is good to hear from you again, Gann68uk.

Gann68uk has been doing some intense study of Elliott Wave Principles, and now with “his new found understanding” of Elliott Wave, he will be able to participate more actively in this thread and make further contributions to this forum on Elliott Wave Theory.

Today I am also going to introduce another approach by GET in our Elliott Wave charts which I believe are more in line with what Gann68uk has written in his post, showing:

1. That EURJPY has indeed completed a “prolonged” Wave [4] that stretched from June 09 to Oct 09 a period of almost 4 months and is now entering into Primary Wave [5] Up.

2.That EURUSD has completed an Extended Wave [3] and now going into a CORRECTIVE Wave [4].

Q: The question arises – how is it that these latest charts are so different from those of my earlier postings. GET has 4 options for the presentation of their charts. To name the first 2 options only viz: (1) Original and (2) LongTerm. GET's Original setting is their default setting, whereas Long Term is given as an alternate.

And very often you find the Wave Counts for these 2 settings are different. Charts produced under Original setting can change their wave counts overnight with new input data and then can change back to the original status. This makes trading difficult.

On the other hand, the Long Term charts do not change their wave counts easily.

Different charts have DIFFERENT PURPOSES. The ORIGINAL is more intended for short term adjustments to the wave counts and may be suitable for short term traders, whereas the LONG TERM provides continuity of wave counts but they do change also from time to time.

What is On Today:

EURJPY: This pair went up sharply yesterday and hit a high of 135.67; (In my attachment of my transaction yesterday, you will notice that in my order I put a TP of 134.91 from my Entry Price of 133.90 – a projection of 100 pips but I was content with my short term gain of 30-50 pips.)

Today, you can expect this pair to retrace a bit BEFORE resuming its upward trend. It will continue to be a BUY until it hit 138.42 the level of Wave [4/B] when it is expected to meet resistance.

For the day traders, as usual, before you place you order, you make sure the retracement is over and the Buying picks up strength – then you move in for a fast kill.

EURUSD: This pair will be moving down towards Wave [4] targeting 1.4500 as indicated by Gann68uk – no doubt about it. This will be a SHORT.

At time of writing, it is only 17 pips down. An aggressive trader prepared to take a higher risk and a high profit, can starting Selling. Stop Losses are tricky to place – perhaps at 30 pips with your TP at 60 pips. When it goes down, it is likely to move more than this.

For a more conservative Short Seller, you wait for momentum to pick up – then you place your order.

GBPJPY: Whether you use ORIGINAL or LONG TERM setting, the direction is Down. And it is a SELL.

GBPUSD: This pair is also entering Wave [5] Down, but looking at the chart pattern, the downtrend has not been firmly established, so I would hesitate to do any short selling.

USDJPY: This pair is going into CORRECTIVE Wave [4]. I would stay away.

General: Lately I am LESS interested in GBPJPY and my new focus is on EURJPY. I shall be monitoring this pair again for an opportunity to buy.

Good trading

Kenneth

Attached Files

EW Charts 20091105.doc (534.0 KB, 5 views)

My Transaction Today - EURJPY

This afternoon I bought eurjpy at 134.12 and later sold at 134.31 making a gain of 19 pips or US$210.19 within 1 hour 38 minutes.

At time of writing, the pips has gone down again by 94 pips and is at 133.95 ie 36 pips below the price I had sold.

Good Trading

Kenneth

Thank you Kenneth. I still have atleast 2 more months of study before I can add value to this forum. I will be reading the posts daily though and will share my views as and when it is applicable.

One advice I would give to any serious elliott practitioner. Get 'Elliott Wave Principles - Key to Market Behaviour' by Robert Prechter and A J Frost and get to know the first 2 chapters like the back of your hand, before even considering paper trading. It is crucial to get a solid understanding of these principles.

Trading the Wave Counts with GET

Attached are the charts for our 5 currency pairs.

The chart patterns are more stabilized with yesterday's data updates.

EURJPY: This pair went up to a high of 135.13 from my Entry Point of 134.12 – about 100 pips up. In between there were swings from up to down and down to up.

For day traders who were prepared to hold for 10 hours or more will turn up to be winners. But for conservative traders like me, I chickened out much earlier but nevertheless still made 19 pips when I saw price movements did not seem to going my way. At least, I did not lose.

Today's BUY is still on. At time of writing, it is down by 5 pips. The pace is a bit slow this morning, so we have to wait further until the pace picks up and prices are moving our direction ie Up, then we move in.

Unfortunately, with GET we do not have those lower wave degrees to guide us, other than the above.

EURUSD: This pair is expected to move down. The pace is picking up a bit faster than EURJPY and going down now by 10 pips. Let it move a bit more – say 20-25 pips, then you can do a SELL.

Hope you are prepared to hold for 10 hours or so.

GBPJPY: I am staying out of this pair for a while. Have been a bit more conscious of the 10 pips spread I have to make to the forex dealers – a lot of money considering there is a Buy order and then a Sell order.

Chart-wise, it is going down.

GBPUSD: My focus is now turning towards this pair for trading opportunities to BUY. The Price Target Profit is getting stronger at 54; It is now down by 12 pips; so I will wait further till prices improved and pace picks up, then I move in.

USDJPY: This is in CORRECTIVE mode, so I shall stay away.

General: Today there should be some trading opportunities amongst EURJPY, EURUSD and GBPUSD as per their chart patterns and wave counts.

Good Trading

Kenneth

Attached Files

EW Charts 20091106.doc (541.5 KB, 12 views)

My Transaction Today - GBPUSD

Bought at 1.6586 at GMT 04:19 and Sold at 1.6620 at GMT 10:12 making a gain of 34 pips within 5 hours 53 mins.

Kenneth