EW Count: To Overlap or Not

[Momentum]

For FUTURES - specifically index futures and separately bond futures, what works best, overlap of wave 4 or not? I know the default is 17% but have understood this was for stocks and have used zero overlap for futures.

What settings work best for intra day index and for bonds.

Tx

[fabrizio]

Momentum


Following the Marcus approach It is the reversal: 0 for Stock allow overlap for futures

My suggestion is to stick with what Marcus says and do not touch the overlap.

[Momentum]

Tx Fabrizio. Do you have a link to that discussion?

Tx

[fabrizio]

Let me found it out and I'll post it to you.

[Momentum]

The ones I found related to the same question I asked in May and the consensus as I read it was to use zero for futures.

I was looking for some fresh insight as I have had varing experiences. I trade off 1mt and 3mt charts.

Thanks for your input.

[fabrizio]

You can Find Here the Approach I Mention

Thre is a long post of Mark about it in a exchange with me, very detailed. As soon as I can find it I will post it again.

Cordially


Ps. sometimes your post are doubled , did you noticed it?

[MR]

Re: EW Count: To Overlap or Not

.Hi Momentum and Fabrizio!

Thanks Fabrizio for the information you provided. It is good to see you active again. Have missed you.

Originally posted by Momentum
For FUTURES - specifically index futures and separately bond futures, what works best, overlap of wave 4 or not? I know the default is 17% but have understood this was for stocks and have used zero overlap for futures. What settings work best for intra day index and for bonds.

As a refresher, Momentum, it might be the other way around. We developed most of the standards as futures traders and then migrated to stocks. Our original research showed we could have up to 17% overlap. Many insist there should be no overlap with stocks, but I personally am willing to take a slightly different approach. Why not at least test an overlap idea in a trade setup or Elliott Wave pattern? If you want to deviate from the norm, just make adjustments on the money management. Call it an aggressive idea and trade it more aggressively, protect it quicker? Just an idea.

For index and bonds it is ok to apply the overlap values of up to 17%. I usually just try 10 or 15% numbers.

As a rule I personally never change any default. I will, however, apply the 'localize' feature a fair amount and will play with the Elliott Wave menu values when seeking feedback ideas. But I don't change the programmed default to my new settings.

PS- extra information... unique characteristics of Bonds and some index, I will add 90% to a Fib Ret when measuring some Bond swings, and add 75% to things like say an S&P 500 when it is range trading. Over the years I have noticed applying these retracement values into the US and SP helps me anticipate the best risk/reward setups. Live Cattle is another one where I will add 75%. With futures, and stocks too, if you study a market long enough you can find unique behaviors. Just wanted to add a little extra to your question as a bonus.

[fabrizio]

Hi Mark

Great to read you !

Maybe is too much sun I took, but I did not got the meaning of what follows:

PS- extra information... unique characteristics of Bonds and some index, I will add 90% to a Fib Ret when measuring some Bond swings, and add 75% to things like say an S&P 500 when it is range trading. Over the years I have noticed building those values into those instruments helps me better anticipate other risk/reward setups. Live Cattle is another one where I will add 75%.

what you mean by adding a (n%) to the Fib Ret?

I do not want to miss a "bonus " that seems to me quite important!!!

Take care

Fabrizio

[MR]

overlap on 3 to 1 min may not be the only issue

.
Hi again!

Originally posted by Momentum .... the consensus as I read it was to use zero for futures. I was looking for some fresh insight as I have had varing experiences. I trade off 1mt and 3mt charts.

If you are trading 3 to 1 minutes you have a unique situation. The dynamics involved with trading that short a time frame may warrant some short time frames adjustments. For example, a 1 minute S&P chart might generate 800 or more data bars in one day. When you are looking at this type of dynamic wave count behavior, the wave counts change very quickly because the default is set to 300.

Statisically the best Type 1's are generated with 300 data bars. I still believe it may be worth experimenting with setting adjustments, in this case, because of the dynamics involved. A typical mind cannot keep up or anticipate the rapid changes in advance on this time frame, or at least I cannot. Try making adjustments to compensate for personal limitations.

Idea:

Create two 3 to 1 minute charts. In one chart make everything default values. In the other experiment. Watch both so you can compare and draw contrasts. If changes are warranted to meet your trading needs you should pick up some ideas experimenting this way.

In the experiment chart change the default to 500. Later try a setting of 800. Try things like compress your data bars closer so you can see more of a 'sequence' in progress. Experiment with the overlap.

Because this topic is only related to wave counts and overlaps I don't want to introduce other ideas. If interested go to the day-trade tips and tricks tread link below. (click here to see day-trade link ideas... scroll down for the better ideas.)

A two strategy approach-- adhereing to standards on one chart, then allowing adjustments on the other chart to 'curve fit' the unique characteristics of a time frame-- I think can be useful. You may find trades using one that the other don't pick up, and vice versa.

I wouldn't recommend this to beginner. If experienced, try it. Try experimenting particularly if you add the many other ideas introduced in the day-trade tread.

It may not be the overlap that is the total issue. Play with this and the other ideas and let me know if it helps.

[MR]

Oi (hi) my dear friend Fabrizio!

Originally posted by fabrizio
... Maybe is too much sun I took, but I did not got the meaning of what follows: what you mean by adding a (n%) to the Fib Ret? ....

Sorry, my friend, it is me just not explaining what I meant very well. (I was struck by lightening about three weeks ago while on vacation and my brain seems challenged. More than usual, right?!. )

Attached are some quick illustrations. Pictures are always easier for me than English words.

Take care, grateful to see you active again in the boards. Hope things are well with you.

[fabrizio]

Oi Marcus!

Agora esta muito claro

Obrigado meu amigo

(Oi Marcus, eu tambein foi golpeado por um relampago !)

Fabricio

[MR]

Agradecimentos Fabrizio! Você demasiado? Os mais melhores desejos, marc

Você faz-me homesick para Brasil!
(You make me homesick for Brazil!)