August 13, 2017

Elliott Wave Principle | Elliott Wave Theory | Elliot Wave

Ralph Nelson Elliott 1871 to 1948.

Ralph Nelson Elliott (photo taken from Internet)

Why use Elliott Wave? 

If you are trend follower, when you are able to forecast the trend change using Elliott wave you can have greater outcome. You can stop enter the trade as you know the trend is end and about to reverse. 

But, all setup can fail. There is also known simple corrective wave and complex corrective wave. These are referring to wave ‘two’ and wave ‘four’. This means when you expect the wave to end and to change trend direction, but the wave continues and go on. So, you either miss a trade or take profit too early.

Look at the example in the last few days or coming few days postings. You will find out many of the wave count starts as far back as in 2008, or 2012. See without a powerful charting software, and data provider such as Yahoo! Finance (free data download) this becomes impossible. So, do you think this Elliott Wave Theory is still useful in your trading. Of course it does! Bu knowing you are in whichever wave phase, you can predict a much better moment or move. 

Using Elliott Wave count is no different from others traders using different time frame to determine the trend. 

Have fun!

Enjoy learning.