My Forex Prediction using Advanced GET - page 69
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Attached is the 30 min chart from Elwave for GBPJPY
It is showing Primary Wave [2] has just been completed, and Primary Wave [3] has just begun.
Primary Wave [2] is a good level to enter a SHORT whether you are a day trader or a position trader.
At time of writing, it is up by 26 pips. If you want to short this pair as a day trader, it is best to wait for the pips to be down first so that it is in line with the overall direction of the pair.
Kenneth
Notification: TIME FOR REFLECTION - What Have We Learned?
After being hectic for the last 5 days, it is time once again to reflect: What Have We Learned?
Not being satisfied with trading the Wave Counts from GET, we went one step further to also trade the Wave Counts from Elwave since the Theory of Elliott Waves applies to markets and not to softwares.
Am I satisfied with my own trading results? We are always on the lookout to improve our techniques and yet bearing in mind NOT to overdo things.
Tomorrow evening I shall be presenting how we go about to improve our approach and examine our own shortcomings - Elliott Wave-wise. What else can I talk about?
Until then
Kenneth
What else can I talk about?
Until then
KennethI would like to know what we can do about different wave counts from different version of elwave and options within elwave. How can we trust these count and enter trade? what can we do to minimise risks.
Hello Everyone
I am a newbie in forex trading. just learning to trade very seriously in future. I have been reading a book on Elliot wave system of trading and it is a great book. So far the critical area that I have noticed in order to master the method is identifying the positions of the 1 -2-3 formations.
Can anyone assist me please.
Thanks
This is a great place to be.
NaijaTrader
Notification:Day Trading the Wave Counts with 2 Supplementary Technical Tools
Tomorrow evening I will present another article (hopefully it will be the final as it never seems to end) on the two most common technical tools I use when using Wave Counts to determine our Entry Points on the completion of Waves 2 and 4 and the start of Waves 3 and 5. They need to go hand in hand.
Until then and good night.
Kenneth
Last weekend we were examining how we can do our Position Trading using Wave Counts from GET or Elwave.
Today I am going to discuss about day trading using GET or Elwave.
Day Trading with GET eod Daily Chart: I do not have the luxury of having a realtime GET to do my day trading that can give me the capabilities of analyzing wave counts in terms of very short time frames such as 1 min, 15 min, 30 min, etc.
Using an eod Daily chart to do day-trading presents a formidable task. The Daily chart gives us the MAIN DIRECTION of the currency pair in terms of PRIMARY WAVE DEGREE, broken down into Intermediate and Minor wave degrees. However, with GET the wave labels normally appear late, and when it does so (especially for Waves 1 and 2 and the starting of Wave 3), the trend is already on its way.
The bottom of Waves 2 and 4 according to Elliott Wave Theory are the best Entry Points, but with GET we never will be able to enter at Wave 2 as its wave label appears only after a Wave 3 label has appeared. And to make matters worse, GET's Waves 1 and 2 are often located “peculiarly”, as mentioned in my previous postings. Probably GET has its own set of algorithms for wave counts for waves 1 and 2.
Q: So how do we trade Wave 3 in GET as a Position Trader and as a Day Trader?
A: GET has a technical tool called XTL to do Wave 3 trading. For some reasons (which I cannot remember now), I do not use this at all. Readers who are interested to learn more about XTL can do so by reading GET's User Manual.
Instead I use the normal Resistance and Support horizontal lines to guide my entry point as a Position Trader. Normally the previous Wave Degree is an ABC; I shall wait for the daily bar to BREAK THROUGH Wave B, then I place my order as Wave B will be the resistance/support line.
As a day trader, the approach is different. As long as I see that it is in a PRIMARY WAVE [3] UP and the last 1 or 2 daily bars are an UP candle, then it is a trade to consider. The actual entry itself on the day of trading will depend whether the pips are moving up or down from the Pacific Open. If the pips are moving down, I shall stay away as it is going against the uptrend and I do not play contra-trends. If, on the other hand, the pips are moving up in line with the overall up direction, then I will place my order.
Q: And how do we trade Wave 5 in GET?
A: When Wave 4 appears, you wait for a few days to make sure that it has indeed finished; then you can do your trade. Here you can also use Fibonacci Retracement ratio of 61.8% to do your counter-checking.
Timing is important for both Position Traders and Day Traders but more so for the day trader.
Day Traders play for the very short term – if possible within the shortest time. Our Target Profit is only around 30-50 pips. Our Stop Loss must be tight. At the most it should be around 20 pips from our Entry Price. And for most of us, this Stop Loss should be placed at the same time your order is placed.
Once your Target Profit is reached, lock in your profit and get out, as very often we see Reversals are exceptionally swift and fast and can wipe away your profit. This is the forex world.
Day Trading with Elwave: The task of day trading with Elwave is less formidable. It does not give us the problems relating to Waves 1 and 2 and so we can trade Waves 2 and 4 to catch Waves 3 and 5. Here again, you may want to wait for a few more days to make sure the correction is over.
However, the problems are of a different nature.
There are 2 considerations for day traders to think about:-
Q1. What Wave Degree Day Trader you want to be – a Primary, an Intermediate, a Minor, a Minute, a Minuette, or a Subminuette?
Q2: What type of Time Frame do you go for – using H4 charts, H1 charts, M30 charts, M15 charts, M1 chart?
Different Wave Degrees has its own set of Price Magnitudes and Number of Hours/Minutes to hold within the same day.
And similarly different Time Frame charts also has its own set of Price Magnitudes and Number of Hours/Minutes to hold.
And what are the best combinations?
Personally, I don't think there is such a thing as ideal combination – as it depends on the currency pair, the Wave Degree and the Time Frame charts and market conditions are different at different times of the day.
It makes your task to discover the right mix – a formidable task. Only BY EXPERIMENTING, you can find the answer for yourself, and no two persons share the same preferences. One man's meat is another man's distaste.
For the whole of last week, I have been using Minor Wave Degree and M30 charts and I was only able to trade for 1 day out of 5 days. Is that what I want? Certainly NOT as I prefer to trade 2-3 times a week.
Flirting around with these variables in Elwave is too time consuming for me. I might as well use the time focusing on what I am now doing with GET which is more productive. Definitely I would not want to disturb my status quo.
I hope readers will now have a better idea of how to do their Entries and Stop Losses and trade the Elliott Waves.
Kenneth
These are two M5 charts for GBPJPY which closed on Friday, Oct 30, 2009. Both are preferred counts (not alternate counts) and the differences in Wave Counts are so evident. It is puzzling, mind disturbing and creates confusion for the user.
Later I will try and explain what could be the cause of this and how we should dig deeper to find the source of the problem.
Kenneth