Anyone using Elliot Wave Theory

[WallStreetHero]

Not many people use EW, BUT its interesting how Paul Tudar Jones uses it and calls the Elliot Wave Principle book as one of the four bibles to trading.

Is there anyone who uses it in their trading.

 

[natureboy]

I think he called it that, as in past tense. He had to work with Tony Robbins I think due in part to losing so much early selling the tech bubble.. Look that one up. Independent review of major Elliott analysis supposedly couldn't show profitable signals on balance.

Personally, I used it for one year and it had winners and losers.. I could see how it may be possible to make money with it...not for me though. Why should exchange rates have a permanent bullish bias for example (which Elliott requires)... That said, sometimes it works

I spent one year with it, and moved on for the better

 

[malaguti]

here here, but unlike natureboy it took me a month to realise it was useless
You cant learn it well enough yourself in a short time and everyone else counts the waves differently anyway and they've been at it for years.
Besides do you really want a method that can't count past 5?
Any analysis is only good after the fact, and oh look, you missed wave 3 because you thought it was an abc correction..pointless

 

[2012ismyyear]

In my view, Elliott Wave is the most powerful form of analysis that currently exists. No other analysis can give you an idea of what exactly price action is likely to do, both in the short and long term. All other forms of technical analysis fit into Elliott Wave in some form. EW does offer something no other form of analysis can do, in giving accurate targets for future price action. Like any other form of technical analysis, it isn't infallible, but when you get the right count you can ride the waves all the wave to the end.

EW is difficult and takes time to learn, but once you start to master counting the waves, it becomes scary how easy it is to predict in which direction price will move. Elliott wave is only a form of analysis, and in order to profit from it, you also need a good trading method, to get into and out of the market. There are methods to make counting the waves easier, and some great courses available to help you learn Elliott more easily. I do recommend reading the Elliot Wave Principle by Frost and Prechter, if only to make up your own mind as to whether it is worth pursuing, and get an understanding for what it can offer.

Also consider some of the reported returns Elliott Wave practitioners have supposedly made. Paul Tudor Jones is one of the worlds best traders and he supposedly uses it, and many other top traders subscribe to the Elliott Wave newsletter, so that's something to consider.

If you'd like any more info, please send me a private mail.

"Many of life's failures are people who did not realize how close they were to success when they gave up." - Thomas A Edison

 

[malaguti]

EW does offer something no other form of analysis can do, in giving accurate targets for future price action

.
Hardly, if you stopped trying to count to five for every small rally down, you would know that there are other types of analysis that have a far more accurate way of determining targets. Hurst cycles analysis using Future Lines of Demarcation (FLD for short) is one, and Point & Figure is another. My targets are always accurate using this method, far more so than yours will be

 

[WallStreetHero]

In my view, Elliott Wave is the most powerful form of analysis that currently exists. No other analysis can give you an idea of what exactly price action is likely to do, both in the short and long term. All other forms of technical analysis fit into Elliott Wave in some form. EW does offer something no other form of analysis can do, in giving accurate targets for future price action. Like any other form of technical analysis, it isn't infallible, but when you get the right count you can ride the waves all the wave to the end.

EW is difficult and takes time to learn, but once you start to master counting the waves, it becomes scary how easy it is to predict in which direction price will move. Elliott wave is only a form of analysis, and in order to profit from it, you also need a good trading method, to get into and out of the market. There are methods to make counting the waves easier, and some great courses available to help you learn Elliott more easily. I do recommend reading the Elliot Wave Principle by Frost and Prechter, if only to make up your own mind as to whether it is worth pursuing, and get an understanding for what it can offer.

Also consider some of the reported returns Elliott Wave practitioners have supposedly made. Paul Tudor Jones is one of the worlds best traders and he supposedly uses it, and many other top traders subscribe to the Elliott Wave newsletter, so that's something to consider.

If you'd like any more info, please send me a private mail.

"Many of life's failures are people who did not realize how close they were to success when they gave up." - Thomas A Edison

Did you just sign up to say this????????

Maybe your from EWI


as for Paul Tudor Jones it worked for him in the 80s and predicted the 87 crash, he made a lot of money but it wasn't all from EW he made lotsss from buying bonds, plus i heard EW wasn't working for him anymore and he stopped using it now.

 

[silvermede]

EW trading has its benefits. EW3 and 5 are best to trade and normally 3 over 5 as EW3 tends to be the longest but not always so. So how do you trade a POTENTIAL EW3? Answer: trade the 123 patterns in the market as an EW must start off as a 123 pattern. If you don't know what the 123 pattern is then Google it.

 

[2012ismyyear]

I'm not from EWI. I'm just a humble trader, who is really enthusiastic about using Elliott Wave analysis in my trading, and have found it really helps me. I've tried numerous methods over the years to become a profitable trader, but it was EW that finally gave me the edge in the markets.

I merely wanted to let everyone know that EW can work, and play devils advocate to the views previously espoused. Many people use it to trade the markets successfully. Please don't be so dismissive of something merely because it doesn't work for you. I understand it is a divisive form of TE, and as with all things, it is wise to be sceptical until you can prove something for yourself.

 

[natureboy]

EW trading has its benefits. EW3 and 5 are best to trade and normally 3 over 5 as EW3 tends to be the longest but not always so. So how do you trade a POTENTIAL EW3? Answer: trade the 123 patterns in the market as an EW must start off as a 123 pattern. If you don't know what the 123 pattern is then Google it.

123 is about like an ABC, right? Sometimes with a 123, point 3 can go below point 1 though which is different from Elliott Wave 1 and 2 rules.

--

In general, yes Elliott can have value. As a core context for analysis, its not my first choice anymore. I'd much prefer a relative strength context or statistical swing context (Sperandeo style) - hey to each their own - if you can make scrill using EW then use it!

 

[splashy]

EW trading has its benefits. EW3 and 5 are best to trade and normally 3 over 5 as EW3 tends to be the longest but not always so. So how do you trade a POTENTIAL EW3? Answer: trade the 123 patterns in the market as an EW must start off as a 123 pattern. If you don't know what the 123 pattern is then Google it.

Agreed. Almost all my trades are based with a 1-2-3 pattern in there somewhere. It gives a trigger and a stop without having to think too much about it. Add some trading criteria for timing and to cut out the crap and you shouldn't go far wrong.

 

[thelazytrader]

I do use EW and I don't. I use it inadvertently because I watch for cycles in the market which by definition are covered by EW theory, however I don't find that I need to follow the theory in order to have a profitable strategy.

 

[malaguti]

I do use EW and I don't. I use it inadvertently because I watch for cycles in the market which by definition are covered by EW theory, however I don't find that I need to follow the theory in order to have a profitable strategy.

Can't see how cycles have anything to do with EW theory. Hurst suggested nominal 5 day, 10, 20, 40 80 day cycles which are still relevant today. How is that possibly defined by a theory that a wave has 5 parts to it, and then goes down in a correctional way. They may complement each other, but the two are unrelated.
How about planetary cycles, election cycles? Nothing to do and certainly not defined by EW.
Good luck though with the cycles..I use that extensively in my analysis and find it one of the best tools around. Shame I dont share your opinion though on EW

If anything its EW that is defined by cycles, and thats the way that a wave form will take place. the 5 waves up sycnhronise with the 5, 10 and 20 day troughs for example and the correction coincides with the trough of the longer time cycle

 

[jaella]

I think you will find that there is a reason that not many use it in trading..

 

[Shakone]

As a side comment...when you find something you believe to be useful, say Elliott wave. Do you go the next step? What is it in Elliott wave that is helping your trades?

Suppose someone uses Fibonacci. And their trading results seem better to them. They attribute some of that success to Fibonacci, but of course these ratios are just ratios, nothing more, so what is helping them? Well for a start they've defined a trend, then they've made sure that they haven't bought near the top, because they've bought at 38, 50% or whatever. They've got a predefined entry, and not an emotional one. Those things keep them out of some bad trades and perhaps help.

Now what is it about Elliott that helps?

 

[coolman138]

Hey myyear
well, can you please recommend some good source to train in counting Elliot waves.

 

[bullfrog]

I think he called it that, as in past tense. He had to work with Tony Robbins I think due in part to losing so much early selling the tech bubble.. Look that one up. Independent review of major Elliott analysis supposedly couldn't show profitable signals on balance.

Personally, I used it for one year and it had winners and losers.. I could see how it may be possible to make money with it...not for me though. Why should exchange rates have a permanent bullish bias for example (which Elliott requires)... That said, sometimes it works

I spent one year with it, and moved on for the better

I am writing here because I don't yet know how to start an independent thread!

I would love to hear opinions about the Goodman Wave and Goodman Swing Counting System promoted by Michael Duane Archer >

 

[TravisN]

I am writing here because I don't yet know how to start an independent thread!

I would love to hear opinions about the Goodman Wave and Goodman Swing Counting System promoted by Michael Duane Archer >

i use elliot wave and works sometimes and other times may not work as well....but that is with anything strategy...

 

[bullfrog]

i use elliot wave and works sometimes and other times may not work as well....but that is with anything strategy...

Elliott wave I do not use much in terms of counts but I do use very good filters to work out if a wave is an Impulse or Corrective wave . I do this on daily, weekly and monthly waves . This works very well together with negative divergence determination.

the Goodman Counts turned out not to be worthwhile .

 

[TravisN]

Elliott wave I do not use much in terms of counts but I do use very good filters to work out if a wave is an Impulse or Corrective wave . I do this on daily, weekly and monthly waves . This works very well together with negative divergence determination.

the Goodman Counts turned out not to be worthwhile .

bullfrog, well said my friend