Discussion of article "The Implementation of Automatic Analysis of the Elliott Waves in MQL5" - page 6

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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 ‘waves.’

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.

We can use Elliott Wave Theory in real time by looking at the larger patterns of the SP 500 index for example. We can deploy Fibonacci math analysis to prior up and down legs in the markets to determine where we are in an Elliott Wave pattern. This will help us decide if to be aggressive when the markets correct, go short the market, or to do nothing for example. It also prevents from making panic type decisions, whether that be in chasing a hot stock too higher or selling something too low before a reversal. We also can use Elliott Wave Theory to determine when to be aggressive in selling or buying, on either side of a trade.


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 appreciate it

 

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read March 2014

newdigital, 2014.03.13 09:30

The Wave Principle

by 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 heretofore unattainable."


 
Too powerful.
 
Well done guys! But in your programme, will constantly fail in analytics, comparisons and especially in microwave counting.... The problem of frequent and false noise is a scourge! Even coryphees like Precter, Frost and B. Williams.... are often wrong in their wave calculations... Mathematically, it is extremely difficult to do... Any system, will be wooden in waves.... But I wish you luck!
 

Great topic, helpful on analysing wave curve using mql5, image of the stage 5.4 is gone, however it can be displayed when change the language setting to Russian.

 
I would love a version of this for MQ4
 

It stopped working:

It writes a recompile warning. There is an error unknown to me in the compile. Please have a look at it by knowledgeable participants. Thanks.

Log: 2016.07.28 11:27:17.858 MQL5 'Elliott wave.ex5' version is too old, it should be recompiled

When compiling: 'NodeInfo' - conversion is not available because of inheritance access Elliott wave.mq5 658 22

 

Couldn't make it work.... many errors at compiling time:

Any idea?

Thanx

 
MetaQuotes Software Corp.:

New article Implementation of automatic analysis of Elliott waves in MQL5:

Author: Roman Martynyuk

Hello,

I wanted to test the programme, but unfortunately it does not work.

MT5 build 1430 / 16/09/2016

Thanks for tips.

 
I've downloaded it and there seems to be an error, it's ea not working, it says too old.
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