Elliott Wave Theory and Patterns - MTPredictor | futures io social day trading
futures io futures trading


Elliott Wave Theory and Patterns
Updated: Views / Replies:20,390 / 82
Created: by Fat Tails Attachments:30

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 30  
 
Thread Tools Search this Thread
 

Elliott Wave Theory and Patterns

  #1 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,601 received
Forum Reputation: Legendary

Elliott Wave Theory and Patterns

I have never been able to identify Elliott Wave Patterns in real time. My impression is that there are always several scenarios at choice, and the correct one can only be identified with hindsight.

The Market Technicians Association CMT Level 2 Exam Requirements include the following

Frost, A.J. and Prechter, Robert R., Elliott Wave Principle, Tenth Edition, New Classics Library, Gainesville, GA c. 1978-2005, ISBN 0-932750-75-3

Chapters:
1. The Broad Concept
2. Guidelines of Wave Formation
3. Historical and Mathematical Background
4. Ratio Analysis and Fibonacci Time Sequences

So, the MTA does take the Elliott Wave Principle serious amd requires it for the preparation of the level 2 exam.

I have read that book, but did not help me to understand the labelling of waves. Could anybody help me out with this?

I attach a simple 60 min chart of ES below. How can this be understood in terms of Elliott wave counts?

The only thing I noticed, is that the first retracement showed a larger adverse excursion than the following retracements. This is in line with the uncertainty, after a bottom has formed. So I do understand that there is an accumulation period with larger retracements, followed by a trending period with smaller retracements. But how can this fit into a corset of numbering waves?

Attached Thumbnails
Elliott Wave Theory and Patterns-elloitt-wave-pattern.jpg  

Last edited by Fat Tails; July 13th, 2010 at 06:06 PM.
Reply With Quote
The following 2 users say Thank You to Fat Tails for this post:
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
 R.I.P. 1960-2010 
 
Futures Experience: Advanced
Platform: NinjaTrader7
Broker/Data: Mirus RCG/Zen-Fire
Favorite Futures: CL & 6e, looking at ES, ZB and AU again.
 
ZTR's Avatar
 
Posts: 2,099 since Nov 2009
Thanks: 1,104 given, 1,390 received



Fat Tails View Post
I
I have read that book, but did not help me to understand the labelling of waves. Could anybody help me out with this?


I can't get yours to fit, here is a schematic.

Super Simple Overview:

Basically, 5 wave patterns are Propagation waves, while 3's are corrections.

Just remember, 3 steps forward and 2 steps back. The end of Wave 1 is usually end of Wave 4.

Waves 1 ,3 and 5 usually made of 5 components, while 2 & 4 are usually 3 component, with one complex and one simple. Declines are the opposite of advances, with 3 downward propagation waves and 2 upward correction waves.

If you read BigMIke's Price Action thread he talks about interpretation. Well it is the same here, there is a lot of interpretation necessary, as well as some mental curve fitting, to make it work.

R.I.P. Andy Zektzer (ZTR), 1960-2010.
Please visit this thread for more information.
Attached Thumbnails
Elliott Wave Theory and Patterns-eliottwave.png  
Reply With Quote
The following 3 users say Thank You to ZTR for this post:
 
  #4 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,601 received
Forum Reputation: Legendary


ZTR View Post
Waves 1 ,3 and 5 usually made of 5 components, while 2 & 4 are usually 3 component, with one complex and one simple. Declines are the opposite of advances, with 3 downward propagation waves and 2 upward correction waves.

If you read BigMIke's Price Action thread he talks about interpretation. Well it is the same here, there is a lot of interpretation necessary, as well as some mental curve fitting, to make it work.

Well. I have read and understood the Elliot book by Frost and Prechter. I could explain everything, which is written in there, but I cannot apply it to trading.

If you look at my chart above, what does it mean? Can you number the waves? Can you tell me, whether price will be up or down tomorrow? Or can anybody develop two alternating scenarios for tomorrow, so that I can validate one of them, when confirmed by price?

Reply With Quote
The following user says Thank You to Fat Tails for this post:
 
  #5 (permalink)
Elite Member
San Francisco Bay Area
 
Futures Experience: Intermediate
Platform: NT,TOS,IB
Favorite Futures: ES,CL,TF
 
Posts: 278 since Jun 2010
Thanks: 154 given, 267 received

Good Elliot Wave folks, always have two or even more interpretations of the past action; one typically bullish the other bearish. Each of these interpretations will have some projections, and some price levels which will validate or invalidate the count. I really wish we could code a simple EW projection system. There are rules to be followed but from that point onwards it should be fairly simple to project multiple interpretations.

Reply With Quote
The following user says Thank You to aviat72 for this post:
 
  #6 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,601 received
Forum Reputation: Legendary

That's perfect to start a newsletter. You always have two options, so nobody can blame you. And in the end you can perfectly explain, why prices turned the way they did.

I am bit sarcastic here, because I hope that a hidden master will come out of his hole and show me how to use Elliot Waves for trading.



aviat72 View Post
Good Elliot Wave folks, always have two or even more interpretations of the past action; one typically bullish the other bearish. Each of these interpretations will have some projections, and some price levels which will validate or invalidate the count. I really wish we could code a simple EW projection system. There are rules to be followed but from that point onwards it should be fairly simple to project multiple interpretations.


Reply With Quote
 
  #7 (permalink)
Elite Member
San Francisco Bay Area
 
Futures Experience: Intermediate
Platform: NT,TOS,IB
Favorite Futures: ES,CL,TF
 
Posts: 278 since Jun 2010
Thanks: 154 given, 267 received

Here is McHugh's projection.

Attached Thumbnails
Elliott Wave Theory and Patterns-mchughwavecountspx.jpg  
Reply With Quote
The following 3 users say Thank You to aviat72 for this post:
 
  #8 (permalink)
 R.I.P. 1960-2010 
 
Futures Experience: Advanced
Platform: NinjaTrader7
Broker/Data: Mirus RCG/Zen-Fire
Favorite Futures: CL & 6e, looking at ES, ZB and AU again.
 
ZTR's Avatar
 
Posts: 2,099 since Nov 2009
Thanks: 1,104 given, 1,390 received


aviat72 View Post
Good Elliot Wave folks, always have two or even more interpretations of the past action; one typically bullish the other bearish. Each of these interpretations will have some projections, and some price levels which will validate or invalidate the count. I really wish we could code a simple EW projection system. There are rules to be followed but from that point onwards it should be fairly simple to project multiple interpretations.

Two ways to look at, but the way the real market works is much more complex and this is really bending reality to fit the rules.

R.I.P. Andy Zektzer (ZTR), 1960-2010.
Please visit this thread for more information.
Attached Thumbnails
Elliott Wave Theory and Patterns-6e-09-10-1440-min-7_13_2010_1444.jpg  

Last edited by ZTR; July 13th, 2010 at 06:56 PM. Reason: Added comment
Reply With Quote
The following 2 users say Thank You to ZTR for this post:
 
  #9 (permalink)
Elite Member
SE-Asia
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Amp
Favorite Futures: ES
 
Posts: 141 since Jun 2009
Thanks: 57 given, 114 received


Fat Tails View Post
I have never been able to identify Elliott Wave Patterns in real time. My impression is that there are always several scenarios at choice, and the correct one can only be identified with hindsight.

The Market Technicians Association CMT Level 2 Exam Requirements include the following

Frost, A.J. and Prechter, Robert R., Elliott Wave Principle, Tenth Edition, New Classics Library, Gainesville, GA c. 1978-2005, ISBN 0-932750-75-3

Chapters:
1. The Broad Concept
2. Guidelines of Wave Formation
3. Historical and Mathematical Background
4. Ratio Analysis and Fibonacci Time Sequences

So, the MTA does take the Elliott Wave Principle serious amd requires it for the preparation of the level 2 exam.

I have read that book, but did not help me to understand the labelling of waves. Could anybody help me out with this?

I attach a simple 60 min chart of ES below. How can this be understood in terms of Elliott wave counts?

The only thing I noticed, is that the first retracement showed a larger adverse excursion than the following retracements. This is in line with the uncertainty, after a bottom has formed. So I do understand that there is an accumulation period with larger retracements, followed by a trending period with smaller retracements. But how can this fit into a corset of numbering waves?

Never you will be sure until you miss the trade :-(, but i use the elliot oscillator in different set ups to help me adjust my count. 5/35 and 10/70

Reply With Quote
The following user says Thank You to Prtester for this post:
 
  #10 (permalink)
 R.I.P. 1960-2010 
 
Futures Experience: Advanced
Platform: NinjaTrader7
Broker/Data: Mirus RCG/Zen-Fire
Favorite Futures: CL & 6e, looking at ES, ZB and AU again.
 
ZTR's Avatar
 
Posts: 2,099 since Nov 2009
Thanks: 1,104 given, 1,390 received


Bottom line: At point 4 above the market will go up, down or sideways

R.I.P. Andy Zektzer (ZTR), 1960-2010.
Please visit this thread for more information.
Reply With Quote

Reply



futures io > > > > Elliott Wave Theory and Patterns

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Counting Elliott waves Billbb Emini Index Futures Trading 4 October 7th, 2016 06:36 PM
NQ - 3m TS4 Long to play the 15m Wave 4 into Wave 5 sdonahue MTPredictor 8 February 11th, 2014 05:47 PM
Webinar: Elliott Wave Theory and Position Sizing Big Mike The Elite Circle 10 July 5th, 2012 01:47 PM
Simple Draw Tool to Manually Label A-B-Cs and 5 Wave Patterns - Does it Exist? forker NinjaTrader 20 September 1st, 2011 08:58 PM
Free Elliott Wave Software Poocher Off-Topic 0 December 2nd, 2010 10:40 PM


All times are GMT -4. The time now is 04:03 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-15 in 0.13 seconds with 20 queries on phoenix via your IP 54.90.92.204