Clarifications on Projections

[epiphany]

Do wave projections drawn in AGET (example -5-) adhere to the following wave conditions per the manual...

1. An Extended W3 (greater than 2.62 of W1) = a W5 somewhere between the length of W1 and 2.62 x wave 1.

2. The vice-versa of above, i.e. a non-extended W3 will yield an extended W5.

3. Simple/Complex relationship of W2 and W4 (if W2 is simple correction than W4 should be a complex correction and the opposite).

More of a curiosity factor than anything else, although it does affect my profit targets on "free trades". Those are trades that I have hit my first and second profit targets and slid my stop to break even or better. That is more of a money management discussion and the importance of position sizing than my questions above though.

Thanks,

Ric

[MR]

Hi Ric!

As a general statement AGET wave counts/sequences adhere to general, basic Fibonacci ratio relationships as highlighted in the manual. But, no, I don't think any Elliott Wave algorithm is good enough to interprete all the complexity issues in advance. This is why we developed other tools like the manual Fib Ret and Ext, XTL, using the Elliott Oscillators with bands, Stochastics with false bar warnings, so forth. They further enhance, improve our understanding of a potential growth or reduction in strength within a wave count sequence. Cross referencing is more helpful, in my opinion, when we are trying to determine better risk/reward potentials, more than say an actual current wave count.

Use the AGET Elliott Wave counts and projections as guides, not as guarantees that 'if this happens, than that will happen next.'

And most certainly, make sure we all review those basic Elliott Wave rules once in a while! It does help. All this mentioned above goes hand-in-hand with our better understanding the AGET Elliott wave count, and in using it more successfully when setting up and managing our trade opportunities.