DB
On your previous chart I notice your wave three in the smaller count is shorter than 5, which does not follow the EW rules. I show here an alternative possibility for consideration.
rgds - arco
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DB
On your previous chart I notice your wave three in the smaller count is shorter than 5, which does not follow the EW rules. I show here an alternative possibility for consideration.
rgds - arco
3 doesn't have to be longest just not the shortest
but your count is a possibilty ,wave 2 is more often a zig zag rather yours is a complex
very subjective really
Yes the EW rules are very complex and Neelys interpretation is different to Prechter.
Impulse Rules: An Impulse is a five Wave pattern labeled 1-2-3-4-5 moving in the direction of the larger trend. It is the most common Elliott Wave pattern.Full set here
- Wave 1 must be an Impulse or a Leading Diagonal.
- Wave 2 may be any corrective pattern except a Triangle.
- No part of Wave 2 can more than retrace Wave 1.
- Wave 2 must retrace Wave 1 by a minimum of 20%.
- The maximum time for Wave 2 is nine times Wave 1.
- Wave 3 must be an Impulse.
- Wave 3 must be longer than Wave 2 in gross distance by price.
- The gross price movement of Wave 2 must be greater than either Wave 2 of Wave 1 or Wave 4 of Wave 1. The gross price movement of Wave 2 must also be greater than either Wave 2 of Wave 3 or Wave 4 of Wave 3. Wave 2 must also be greater than 61.8% of the gross movement of each of the above 4 sub-Waves.
- Wave 3 and Wave 1 cannot both have 5th Wave failures. (A Failure is an impulsive Wave where Wave 5 is shorter than Wave 4 by price.)
- Wave 3 cannot be less than 1/3 of Wave 1 by price.
- Wave 3 cannot be more than 7 times Wave 1 by price.
- Although there is no minimum time constraint for Wave 3, its absolute maximum time limit is 7 times Wave 1.
- Wave 4 can be any corrective pattern.
- Waves 1, 2 and 4 cannot overlap except by 15% of Wave 2 with leveraged securities, and then only for a maximum of less than two days.
- The gross price movement of Wave 4 must be greater than either the gross movement of Wave 2 of 3 or Wave 4 of 3. The gross price movement of Wave 4 must also be greater than either the gross movement of Wave 2 of 5 or Wave 4 of 5. The gross movement by price of Wave 4 must also be greater than 61.8% of the gross movement of each of these four subwaves.
- The gross movement by price of Wave 4 must be greater than 1/3 of the gross movement of Wave 2 by both price and percentage movement.
- The gross movement by price for Wave 4 must be less than three times the gross movement of Wave 2 by both price and percentage movement.
- Wave 3 and Wave 4 cannot both be failures. (A Failure is an impulsive Wave where Wave 5 is shorter than Wave 4 by price.)
- Although Wave 4 has no minimum time constraint, the maximum time for Wave 4 is twice the time taken by Wave 3.
- Wave 5 must be an Impulse or an Ending Diagonal. However, if Wave 5 is longer than Wave 3 by price, then Wave 5 must be an Impulse.
- Wave 5 must move by price more than 70% of Wave 4. (This is not gross movement. Only consider the end points of both Waves.)
- Wave 3 must never be shorter than both Wave 1 and 5, by either price distance or percentage price movement.
- If Wave 5 is truncated, or contains an Impulse that is truncated, then neither Wave 3 nor Wave 4 can contain a subwave that is truncated. (A truncated pattern is where Wave 5 is shorter than Wave 4. This is also known as a failure.)
- The maximum movement of Wave 5 is six times Wave 3 in both price and time.
- Wave 5 has no minimum time constraint.
http://www.geocities.com/WallStreet/...es/EWRules.htm
rgds - arco
HOLLY ****
i thought i was getting on top of the rules
:D
DB
Try a read of Glen Neelys version of EW if you can find a copy in Borders.
Also Miles Wilson Walker from Auckland has an interesting slant on the short term trading using EW, (How to Identify High-Profit Elliott Wave Trades in Real Time), and Steven Poser is another EW 'master' - (Applying EW Profitably).
Mind boggling
rgds - arco
Updating the previous EW chart
Interesting that both 261.8 wave one projections terminate in the same area
Time alone will tell.............
i just got a friend of mine to give me his ew on gbp , he subscribes to elliotwave .com
Signal = Sell stop below 2.0800 area.
Risk Reward Ratio = 2.39+ (Medium Risk)
Our First target profit at 2.0657 area.Second will be at 2.0535.
Stop Loss at above 2.0927 area.
Great Britain Pound Elliott wave Analysis :-
Last Friday we had a clear correction downward form at GBP/USD chart.
That is the first signal of more possible down fall moves if cable continue to loose bullish momentum.
We see last friday downfall as our first sub-wave a of wave (iv).
The duration of our objective target sub-wave c may vary.Its all depends on market movement.If it made a strong move down, we will see sub-wave c may complete in very near future.And if market have a slow bearish momentum, we could see market take a longer time to complete sub-wave c of wave (iv).
Critical zone of wave (iv) would be at 2.0370 area.If Cable break that support and trade below 2.0350 point , it will be a major downfall for a logger period of time.
Latest GBP/USD Elliott wave analysis on medium term basis
if anyone was clever enough to pick top of wave B 3oo + pips to be had yesterday
safer trade now on as price taken out A low
butterfly in progress on hourlies
was long Eur against the pound last night got 80 pips.
hitting critical level of 20370 area have closed out shorts
if this is taken out serious correction in progress worth another short
c wave worth 500 +
safe trade 150 +