Elliot Waves is a incredible subject which additionally helps fibonacci measurement

Elliot waves could be categorised as A B C D E F

Its thought-about that value growth ends at leg F

I’ll talk about about these in excessive to low mode as per screenshot.

1. Wave AB : Must be impulse

2. Wave BC : Must be minimal 0.382 of AB

3. Wave CD = Ought to go minimal 1.618 of AB

4. Wave DE = the place E Must be all the time lesser than C

5. Wave EF = Last wave earlier than value is able to reverse

Nevertheless simply studying fundamentals wont make you a superb dealer as value additionally makes double high and backside and invalidate waves

An Elliot wave could be began from anyplace comparable to center of development, not restricted to Tops and backside however totally on web, folks says it all the time begin from high and backside which isn’t true.

So long as the foundations of waves are happy it may possibly begin from center of development too.

Instance:

Harmonics waves and Elliots waves are comparable however might differentiate in some circumstances

In each Harmonics and Elliot waves a dealer validates wave.

Validation Strategies:

1. Fibonacci : A dealer makes use of fibo to validate waves, Retracement and Growth are two instruments which is broadly utilized by merchants. Retracement for getting into at pullback whereas growth is used for reversal buying and selling the place a dealer trades towards the commerce. Extremely rewarding technique, HFT and prop desk dealer by no means commerce pullbacks as they’re scalper their fundamental aim is accumulation and distribution the place they maintain for seconds and make sufficient which a standard males doing job earns in a 12 months.

2. Ratios : comparable to A to B, B to C, C to D and D to E

What invalidated Waves?

Guidelines. If guidelines are damaged, a wave is not legitimate.

commerce Elliot Waves?

You’ll be able to commerce in 3 steps

1. Construction Verification

Validate ABC minimal earlier than taking actions on DEF, Don’t commerce at ABC

2. Ratios Verification

Confirm Ratios after validating construction

3. Entry Verification

Entry needs to be verified by value motion, Numerous techniques are used amongst merchants which could be private and is probably not shared publicly. These techniques are like CHESS techniques the place it’s a must to lure your opponent

till he’s examine and mate, value won’t transfer out of your entry to TP. In case your opponent i s examine and mate then you’ll be able to take entry. In different phrases they are saying value is taking stops or liquidity.

Instance :

4. Entry: When you apply right tactic, You’ll be able to enter in a commerce. Notice that time

4. Wave DE = the place E Must be all the time lesser than C

So Value might go simply 1 pt under C and it nonetheless fall and wave shall be legitimate but when your SL is inaccurate then you’ll lose cash, so guidelines are guidelines. if you’re buying and selling DE and promoting at E,

It’s best to put your SL above C solely nevertheless that is simply an instance about how self-discipline is adopted up by Elliot waves dealer and its not similar as proven on books.