Hi Roman, seems that there are bugs in the code especially regarding wave finalization - it tends to be always [A], (A), [a], (a) and so on) - very conservative.
Also for EUR / USD dayly with 365 days history from now notice incorrect (A) (B) (C) correction right after this May's highs (order is reverse pricewise). Did you have a chance to upgrade with more Elliot rules such as Fibonacchi, wave extention, expanded flat etc. ?
Traders often love to trade a good story. Who blame them? Few things are
as exciting as a story that makes sense and price action that mathes
the story as you collect the pips.
Why Focus on Trend Continuation
Trend continuation is where a majority of trend traders enter trades and
make money. However trends correct or end. This even develops with
trends that come with great stories.
However, trends come to an end. Even if the trend will eventually
resume, which we hope it does, trends will at least temporarily correct
as profits are taken. This is where the uncomfortable discipline of
patience becomes a must as trend traders wait out the correction before
the trend resumes.
What Do Common Corrections Look Like?
Corrections can take many forms. The most common correction is known as a
3-wave correction or zig-zag in Elliott Wave terms but there are more
complex corrections as well. The more complex corrections are known as
Trend traders are right to fear complex corrections like a triangle.
Correction often due trend traders little favor but to waste time and
eat up capital as they hope to catch a breakout. Thankfully, there is a
simple correction that is easy to spot and easy to wait for it to break
that was earlier introduced as the zig-zag correction. If a correction
is not easily recognize, it is often best and most profitable to leave
it along until a clear breakout develops.
How to Identify the End of a Correction & Resumption of Trend?
There are 3 ways that can help you confirm the end of a correction.
While none of these are guaranteed to bring about an incredible trend
resumption, they will signal that the momentum is back with the trend.
The three methods listed in order of least aggressive to most aggressive
are; price breaks of a corrective highs in an uptrend or corrective
lows in a downtrend, corrective price channel breaks, and an RSI-break
back in the direction of the prior trend.
For most traders, correction are better left alone. It’s important that
you have patience to trade well and now you know multiple tools to help
you identify trend continuation. Once the correction is over and the
trend has resumed, make sure you manage your risk!
Keys to Investor Success - Elliott Wave Theory (based on thetechnicaltraders article)
Elliott Wave Theory - Plenty of people will freely offer you
advice on how to spend or invest your money. “Buy low and sell high,”
they’ll tell you, “that’s really all there is to it!” And while there is
a core truth to the statement, the real secret is in knowing how to
spot the highs and lows, and thus, when to do your buying and selling.
Sadly, that’s the part of the equation that most of the advice givers
you’ll run across are content to leave you in the dark about.
The reality is that no matter how many times you are told differently,
there is no ‘magic bullet.’ There is no plan, no series of steps you can
follow that will, with absolute certainty, bring you wealth. If you
happen across anyone who says otherwise, you can rely on the fact that
he or she has an agenda, and that at least part of that agenda involves
convincing you to open your wallet.
In the place of a surefire way to make profits, what is there? Where can
you turn, and what kinds of things should you be looking for?
The answers to those questions aren’t as glamorous sounding as the
promises made by those who just want to take your money, but they are
much more effective. Things like careful, meticulous research. Market
trend analysis. Paying close attention to extrinsic factors that could
impact whatever industry you’re planning to invest in, and of course,
Elliott wave theory. If you’ve never heard of the Elliott wave, you owe
it to yourself to learn more about it.
Postulated by Ralph Nelson Elliott in the late 1930’s, it is essentially
a psychological approach to investing that identifies specific stimuli
that large groups tend to respond to in the same way. By identifying
these stimuli, it then becomes possible to predict which direction the
market will likely move, and as he outlined in his book “The Wave
Principle,” market prices tend to unfold in specific patterns or
The fact that many of the most successful Wall Street investors and
portfolio managers use this type of trend analysis in their own decision
making process should be compelling evidence that you should consider
doing the same. No, it’s not perfect, and it is certainly not a
guarantee, but it provides a strong framework of probability that, when
combined with other research and analysis, can lead to consistently good
decisions, and at the end of the day, that’s what investing is all
about. Consistently good decision making.
For many, its not practical to employ Elliott Wave analysis with
individual stocks and trading, but it can be done with experience.
Knowing when to enter and exit a position whether your time frame is
short, intermediate, or longer… can often be identified with good
Elliott Wave Theory practices. Your results and your portfolio will
Forum on trading, automated trading systems and testing trading strategies
Something Interesting to Read March 2014
newdigital, 2014.03.13 09:30
Ralph Nelson Elliott
The Elliott Wave Principle is a form of technical analysis that some
traders use to analyze financial market cycles and forecast market
trends by identifying extremes in investor psychology, highs and lows in
prices, and other collective factors. Ralph Nelson Elliott, a
professional accountant, discovered the underlying social principles and
developed the analytical tools. He proposed that market prices unfold
in specific patterns, which practitioners today call Elliott waves, or
simply waves. Elliott published his theory of market behavior in this
book "The Wave Principle". Elliott stated that "because man is subject
to rhythmical procedure, calculations having to do with his activities
can be projected far into the future with a justification and certainty