Elliott Wave?

[plasma]

Anyone here using Elliott wave? I mean in real-time, not just after the fact counting the waves. How do you use it in real-time? Thank for any input on this.

[Awake]

What I do is look for the most obvious trend ends and confirm 1rst wave with 2 wave correction to get the most profitable 3rd wave. I use tick charts as it smooths the patters so that is simpler to view them. I use 610 tick and 977 tick (Fibonacci numbers, just for fun not really critical) and maybe a 60 min or daily for the big patterns.

To count waves I also use a simple trend line (manually drawn), waves tend to follow a trend line. Look for ABC patterns in the opposite corrections. I've seen so many Elliot estimates come through for real that it merrits my time and effort to learn them, looks like the big boys use them.

[Llamedos]

Plasma – If your question is designed to discover whether it is worth you while learning Elliott Wave then I feel I must warn you that I see it as a double edged sword.

Years ago I spent quite a while learning Elliott Wave by studying Robert Beckman’s ‘Powertiming’ and Robert Balan’s ‘Elliott Wave Principle’, both excellent books in their own right. And as Awake quite rightly says there are many instances of Elliott based predictions coming too close to be called a coincidence for the principle to be dismissed out of hand. The other side of the sword however manifests itself in the fact that, once you become proficient at reading the waves, you may become unable to look at a chart without seeing some sort of wave count – whether you want to or not! In the past this has seemed to affect my judgement and often to my detriment.

Having said that, if you are still interested in using Elliott Wave in real time then you should try a get hold of a copy of Robert Balan’s book as in it he describes a method that he says (properly utilized) could turn $10,000 into $1.000.000 in just over 4 years. This ‘boast’ shouldn’t be taken too lightly as Mr Balan is a well respected member of the Forex community and was (and may still be) a chief analyst at Saxo Bank.

If you are unable to find a copy of ‘Elliott Wave Principle’ the method is also described in Bill Williams ‘Trading Chaos’. Although in my opinion it is not as well presented as it has been altered from Mr Balan’s original to support the Chaos theory put forward by Bill Williams. Nor it anywhere near as well illustrated.

I hope this helps.

[infudibu]

This is a very informative conversation. Thank you!

[Awake]

The EWP works best I guess in very liquid markets like Forex and Indexes. The SP is showing at this moment the final stages of a wave 4 of a downward impulse so we have some more down movement still to go in the SP e-Mini. I don't trade the whole waves as I day trade, not swing trade. But the impulse waves are very profitable. Always combine it with Fib Studies and Fib Clusters (confluences) and your own technical analysis.