Modern Elliot Wave trading using Elwave. - page 21

[lalthan]

Good idea. You guys confirm the number of records and I'll join in. Anyway, we are not looking at the super-cycle/grand-cycle which is too long a time frame for a trader (we are not investors,are we?:)).

GreatYves:
After reflexion, Elwave settings for forex should not be the same as stocks or indices, since the price variation is much more limited, i mean a pair is usualy trading within a certain range. like USDCAD as always been trading somewhere between .65 cents to 1.45$ at most, (i think!)? gbpusd from 2.45 to 1.04 so these figure are relatively in a close range. Compare to a stock that can range from a few cents to many hundred dollars! Base on that knowledge maybe the time span (number of bars) can be much lower, say the last significative swing, from june 2001 so about 8.5 years or 8.5 x 260 = 2210, let's say 2400 bars would be enough, or that would be 100 days if you analyze an hourly chart. Now a consensus would have to be done on that figure, so we all have the same output. What do you think guys?

[lalthan]

Hi guys,

Long silence from you guys. I've been rechecking the reason why the wave counts are different on the charts.

I realised that if I go into the different alternatives presented in the wave tree, I could locate the same kind of wave structure that is available on your analysis. However, the larger time frame labels are slightly different.

This leads me to believe that as long as I know the next two higher time frame direction, it does not matter whether it is 1 or a, 2 or b. I can always enter the trade and as long as I know my risk to reward ratio and then apply it with a logical stop loss and money management, the profit will always be there.

Very nicely explained here: Elliott Wave: Introduction

[yano125]

I have been playing around with the software for a few days now trying to master how to use it thru trial and error going thru the menu.

After reading posts here that people are getting various wave counts probably due to variations from feeds of different brokers or the number of bars they use or due to just about anything else.

IMHO I think based on the results I have been getting, There will be counts that are correct and some I actually do not agree with ( not to say that I am better than this software ). What is important for me is that some body or something starts the labelling and maybe I can just check whther the labelling for correction and impulses are correct ( or shall I say ... I agree with or not ).

Then I go back to my charts and start labelling them using the results generated by the software combining it with my own judgement and perceived wave count.

Attached are a few of the wave counts and results I was able to generate over the weekend. I hope GY does not mind. If my charts seem to be off the objective of this thread, kindly let me know and I can post on or start a different thread.

Yano

[yano125]

Gbpusd

The labellings may not all be correct. I only refer to these charts fpr comparing with my own wave counts and I trade using multiple strategies and with the use of technical indicators

[Yves]

Thanks for interest. I did a quick scan analisys of 11 major pairs and XAU and XAG and the winners are: 3 positives any wave degree, GBPUSD, AUDJPY, NZDUSD. 3 negatives any wave degree, USDJPY, USDCHF. No consecutive 4 wave degree anywhere.

But i am really uncertain on my behalf. The past week thanksgiving-dubai semi-panic have left me.. Some kind of weird feeling inside. I think i will be aside for a little while untill a clear trend show up. i was bullish last week but now the sentiment turn around twice shortly and it's too fast for me..

[yano125]

GreatYves:
Thanks for interest. I did a quick scan analisys of 11 major pairs and XAU and XAG and the winners are: 3 positives any wave degree, GBPUSD, AUDJPY, NZDUSD. 3 negatives any wave degree, USDJPY, USDCHF. No consecutive 4 wave degree anywhere. But i am really uncertain on my behalf. The past week thanksgiving-dubai semi-panic have left me.. Some kind of weird feeling inside. I think i will be aside for a little while untill a clear trend show up. i was bullish last week but now the sentiment turn around twice shortly and it's too fast for me..

GY

When you do not get a clear direction on your EW , do you not use other tools and strategies to evaluate the market?

I suggest you do that. I use EW as the base of my analysis. But I also use other tools to validate my wave counts. although, ew may not show a clear signal on 1 time frame, move to a higher tf or a lower tf and you might just get a clearer direction there.

Remember that bigger waves are made up of smaller waves. Divergence, MACD, RSI, Stochastics and even MA crosses could help.

[yano125]

For those using Elwave 7.6 and MT4 data:

MT4:

Open a chart of currency pair desired

Switch to timeframe you want to analyze , example 1 hr or 60min

Click on Tools/Options/Server/Enable DDE Server/Ok

Click File/Save as/

To save file, go to Local disk C/Program Files/ELWAVE 7.6/Examples

Type in the file name

then select file type as ASCII

Click Save

Then go to explorer window thru my computer. Or open your Excel and

Search for the .csv file or ascii that you just saved and open it

when in excel and in the folder where you saved the .csv file

set the file type to all files and not just all excel files

mine actually arranged the data with the most recent at the bottom

so i needed this extra step of rearranging the data

i found out that elwave recognizes the data properly if the data was arranged with the most recent data on top or on the 1st row

I fixed my data using the Data /Sort facility of excel

on the far right column type the number 1 on the first row

highlight this box and hold down the shift key while you drag the cursor down to the last box beside the last row containing data.

an easier way of high lighting would be to type in the number 1 first on the first row as above and click ok

then go down to the box beside the last row of data

click on this box

then use the cursor to drag the scroller bar on the right side of the spreadsheet

and drag the scroller up to the top

when you see the row 1 of the spreadsheet,hold down the shift key and put the cursor on top of the box where the number 1 is THEN click on it while holding down the shift key

this procedure should high light the rest of the boxes in the column

click edit/fill series/ step value should be 1 / ok

last column should number all the rows corresponding to those filled with data

then highlight the whole range of data including the number series

click data/sort

on the first selection: refer to the right most column and choose descending as the option

click ok

click file/save/ give it a new name

make sure it is still saved as an ascii file type or .csv

when you exit the csv file there will be a series of 3 windows. just click on the Yes option on these 3 windows

now you can open this file in ELWAVE 7.6

In ELWAVE 7.6

clcik Chart/new chart

then select the csv file you just saved

first column will be the date and you have to select the format type that it represents

then tick the item : first row is most recent data

click ok

I hope these helps those who are just starting out to use ELWAVE.

Next for you to learn is how to maximize the ability of elwave

I just recently found how useful the Batch processing is

But of course it is still best to know the rudiments before moving into the batch processing.

it took elwave almost 35 minutes per file to analyze more than 100,000 combinations, provide a summary inspector, label the chart and even include channels whenever possible then indicate probable fibonacci targets for extention and even retracements I think.

an added feature using another button would be the target zones indicated by shaded colours as you can see in 2 of the charts I posted.

I have been doing EW analysis manually since the beginning and it is only now that I have used a software.

I do not recommend using a software if you still can not do it manually. You need to be able to analyze what the software does or labels and determine if it is acceptable or not.

It is just like letting it do the labelling for the trial and error.

Use this too for determinining a swing as impulsive or corrective.

Then label your own charts

Note too that it may prove useful to use data only from Major swing points

[Yves]

Gold

Gold reach a real big super MAJOR pivot point. 1.618 Fibonacci extension of the wave up from 1971-1980.

[kenneth37]

[Yves]

Well... Have you look at gold, a major drop occured today. 6300 pips in 7 hrs. An actual proof that Fibonacci ratio is THE most powerfull tool in trading. This correction will probably make a come back to the 1200+ level, if not a reversal is possible.