The Ellipse

[iliketype1s]

AMZN Ellipse with TJ's Web follow-up, 01/22/03

Trying to follow-up to Earlier AMZN 15 Min Example:

If using the Normal Ellipse as a primary Type 1 Sell (T1S) qualifier, the 15 minute AMZN delivered the Sell opportunity trigger when the Normal Ellipse finally arrived. This T1S became even more attractive when the minor MOB from Wave 'A' with appropriate 'hash marks' [above Ellipse], the 'RB' (21.7613) resistance-- As Alex reminded-- the 62% resistance retracement, to name a quick few. (If time permited, I might be able to substantiate several other reasons for this trade.)

But now comes the harder trading question. . . would you have stayed in this trade knowing the market is soon closing? Part of a trading strategy must include questions like this.

Later I would like to follow-up more on this notion, but for today, let's just say, for sake of illustration, I took 2/3rds the profits yet stayed in 1/3. So long as AMZN stays below 21.75-85 tomorrow on any little rally off today's close-- if I get another chance tomorrow I will am inclined to try and sell again. (I agree with you, Alex, your stop out area is still the best under this Type 1 Sell setup.)

Take care, hope you 'all have a nice evening, Marc

[ACM]

Marc

But now comes the harder trading question. . . would you have stayed in this trade knowing the market is soon closing? Part of a trading strategy must include questions like this.

That is a very interesting question. In fact - probably as a habit - the first thing I did when I posted the earlier chart on AMZN was to trace an Ellipse from B -> C of wave4. In the original image one can see that the projected point of intercept was around 21.00 which could have been an ideal place where to lighten the position with the intent of selling higher or re-establishing the full short on a breakdown of the Ellipse.
Attached is what happened to that Ellipse

Alex

[iliketype1s]

AMZN 15 min, Ellipse Type 1 Sell Update

Alex,

The Ellipse example you showed to help lighten the short position is a sweat idea. Andy Bushak, one of my AGET coworkers, also uses this technique. I don't know why I keep forgetting to apply the Ellipse in this manner as it really can be a helpful technique.

Am grateful we discussed reducing yesterday's AMZN Short exposure overnight. With today's higher gap open, it appears the plan to sell higher again was good. The 21.75-85 resistance area we talked about worked well (so far) as a nice sell area this morning.

For what it is worth, I am leaning toward taking profits quicker today. (ie., there are several Type 1 Sell setup contradictions adding confusion to the current 15 minute trading opportunity-- low PTI, 5/35 oscillator 1.40 broken, etc.) New Type 1 Sell ideas are getting harder to figure out.

While I did not show it in the attached [below] early morning AMZN chart, bring up a new Daily TJ's Web in 'Auto' mode for today. Then reissue back to a 15 minute chart. Combine this with your Ellipse application. See if it adds insight into today's potential swing points. Don't overlook the minor MOB's you can generate from immediate pivots. You may find them to be useful.

- Marc

[iliketype1s]

The 15 minute AMZN Type 1 Sell setup with the Normal Ellipse arrival, shown the last two days, had limited oppportunity. The inital 5 wave down sequence ended up failing and becoming a 3 Wave type correction. We did say in the earlier example there were concerns. A couple ways of salvaging something out of the trade setup would have been using the Ellipse technique Alex showed. Both days the Ellipse arrived at the price dip lows, which Alex points out is a one way of using the Ellipse to at least lighten up on a profitable position.

To follow-up how I use TJ's Web with the Ellipse/MOB, notice how the price went to the neutral zone and held, confirming the bias being up. Notice how also the RC resisted the opening-- where the first MOB is-- a specific area to short again, stop above it? Notice how the price advance could not exceed the RD outer range-- a proper recognition that the trader's buy opportunity, if swing trading, had run its course for that day and that might be all there is for today. For one trying to day-trade swings, take the 15 min AMZN chart and reissue it to a 5 or 3 minute time frames. (recalculate your Ellipses if necessary.)

The reason why I wanted to introduce the combination of using TJ's Web with Ellipse applications was to show how it can easily add insights, showing precise support and resistance focal points. Whether you are using the Ellipse in a Type 1, or in a day-trade swing trading setup, it can help.

When you cross-reference this 15 min setup to a shorter time frame, such as a 5 or 3 minute, adding other trading tools and/or techniques such as the 6/4 DMA, Regression Trend Channel, XTL, so forth, and you begin to improve your understanding of ways to trade those Web support/resistance swings. Remember, in this example, the use of TJ's Web is meant for day-trading because it is a 15 minute or lower time frame we are referring to. For postion trading we would want to use a Weekly for Web calculations.

[MR]

Follow-up on using TJ's Web Levels with the Ellipse study

Since the use of TJ's Web Levels within an Ellipse application was
first introduced in this tread, I wanted to share with you a link to
a good web level article I just finished on the subject.

Click on the link below, to learn more about TJ's Web Levels--

http://share.esignal.com/groupcontents.jsp?folder=Web Levels&groupid=20

[donv]

Marc, it appears the file section is not accessable, all the folders from prior are gone

dv

[MR]

You may need to sign up to join the Advanced GET User Group,
at least for now, to access this information.

I have been encouraging people using AGET tools and studies
to join the Advanced GET User Group. They have been signing
up for eSignal Central, but they were having problems figuring
out how to specifically join our user group.

We changed the settings and it seems to be working. They
are now able to sign up and get approved as members.

Joining the group is important to them because they wish
to receive the email notifications for new information.

Sorry for the inconvience. Changing the group setting is
the only way I could figure out how to make it easier for
our friends to join the group.

If you wish to join go to Advanced GET and click on "join"
and that should give you access to the information.
No one will be turned away.

[donv]

Marc I am signed up have been for a few weeks, do I need to signup again??? this AGET forum still works fine it is the AGET "file sharing" that I can't access, none of the prior folders are listed on the left as before, it keeps telling me I have to register but when I try it says I already am???? Was working fine until yesterday

dv

[RNuckles]

Indicator

Matt,

Plz tell us what indicator you are useing on your AMZN & ORCL charts? The red & green one at the bottom.

Thnx,

Ron

[mattgundersen]

Here you go - it's an EFS that I wrote.

You might want to comment out the Alert.email calls

m.

var vLen = 3;
var vOff = 1;
var bDoAlerts = true;
var bColorBars = true;

function preMain() {
    setStudyTitle(vLen + "/" + vOff);

    if(bColorBars) {
        setDefaultChartBG(Color.cyan);
    }

}

var elliott = new GetElliottStudy(300, 0, 50, 5, 35, 0);
var maH = new MAStudy(vLen, vOff, "High", MAStudy.SIMPLE);
var maL = new MAStudy(vLen, vOff, "Low", MAStudy.SIMPLE);

var nLastColorWave = null;
var nLastWave = null;
var bInTrade = false;

function PrintClose() {
   var x = close(-1);
   x *= 100;
   x = Math.floor(x);
   x /= 100;
   
   return x;
}

function PrintMAH() {
   var x = maH.getValue(MAStudy.MA, -1);
   var x = close(-1);
   x *= 100;
   x = Math.floor(x);
   x /= 100;
   
   return x;
}

function PrintMAL() {
   var x = maL.getValue(MAStudy.MA, -1);
   x *= 100;
   x = Math.floor(x);
   x /= 100;
   
   return x;
}

function FormatMA() {
    return vLen + "/" + vOff;
}

function FormatSI() {
    return getSymbol() + "," + getInterval();
}

function FormatLongEntry() {
    return "MA: " + PrintMAH() + ", Price: " + PrintClose();
}

function FormatShortEntry() {
    return "MA: " + PrintMAL() + ", Price: " + PrintClose();
}

var vLastMRW = null;
var vLastMRWIndex = null;

var nState = 0;

function main() {
    var vC = close();
    var vH = maH.getValue(MAStudy.MA);
    var vL = maL.getValue(MAStudy.MA);
    var vPrevC = close(-1);
    var vPrevH = maH.getValue(MAStudy.MA, -1);
    var vPrevL = maL.getValue(MAStudy.MA, -1);
    var nWave = elliott.getValue(GetElliottStudy.WAVE);


    var nBarState = getBarState();
    if(nBarState == BARSTATE_NEWBAR) {
        if(nLastWave != null) {
            if(nLastWave == 2 || nLastWave == 4 || nLastWave == -9 || nLastWave == -5) {
                if(nState != 1) {
                    bInTrade = false;
                }

                nState = 1; // long
            } else if(nLastWave == -2 || nLastWave == -4 || nLastWave == 9 || nLastWave == 5) {
                if(nState != -1) {
                    bInTrade = false;
                }

                nState = -1; // short
            } else {
                nState = 0;
            }
        } else {
            nState = 0;
        }
    }

    // debugPrintln("BI: " + getCurrentBarIndex() + "LW: " + nLastWave + " State: " + nState + " InTrade: " + bInTrade);


    // var vMRIW = elliott.getValue(GetElliottStudy.MOSTRECENTINTERMEDIATEWAVE);
    var vMRW = elliott.getValue(GetElliottStudy.MOSTRECENTWAVE);
    var vMRWIndex = elliott.getValue(GetElliottStudy.MOSTRECENTWAVEBARINDEX);
    // debugPrintln("MRW: " + vMRW);
    if(vLastMRW == null) {
        vLastMRW = vMRW;
        vLastMRWIndex = vMRWIndex;
    } else if(vLastMRW != vMRW || vMRWIndex > vLastMRWIndex) {
        if(bDoAlerts) {
            Alert.playSound("krtechop.wav");
            Alert.addToList(FormatSI(), "Elliott Wave Change");
        }
        vLastMRW = null;
        vLastMRWIndex = null;
        nLastWave = null;
        bInTrade = null;
        nState = 0;
        nLastColorWave = null;
        bInTrade = null;
        reloadEFS();
    } else {
        vLastMRWIndex = vMRWIndex;
    }

    if(nWave != null)
        nLastWave = nWave;

    if(nLastWave == null || vC == null || vH == null || vL == null)
        return;

    var bColorOK = false;

    if(nLastWave == 2 || nLastWave == -2)
        bColorOK = true;
    else if(nLastWave == 5 || nLastWave == -5)
        bColorOK = true;
    else if(nLastWave == 4 || nLastWave == -4)
        bColorOK = true;
    else if(nLastWave == 9 || nLastWave == -9)
        bColorOK = true;

    if(nLastColorWave != nLastWave) {
        nLastColorWave = nLastWave;
        if(bColorOK) { 
            if(bColorBars) {    
                setChartBG(Color.white);
                setGlobalValue(FormatSI(), Color.white);
            }
        } else {
            if(bColorBars) {
                setChartBG(Color.cyan);
                setGlobalValue(FormatSI(), Color.cyan);
            }
        }
    }


    if(bColorOK == true) {
        if(vC > vH) {
            // drawShapeRelative(0, 20, Shape.UPTRIANGLE, "", Color.blue, Shape.RELATIVETOBOTTOM, "Shp" + getValue("rawtime"));
            setBarBgColor(Color.lime);
        } else if(vC < vL) {
            // drawShapeRelative(0, 20, Shape.DOWNTRIANGLE, "", Color.red, Shape.RELATIVETOBOTTOM, "Shp" + getValue("rawtime"));
            setBarBgColor(Color.red);
        }            
    }

    if(nBarState == BARSTATE_NEWBAR) {
        if(nState != 0) {
            if(nState == 1) {
                if(!bInTrade) {
                    if(vPrevC > vPrevH) {
                        bInTrade = true;
                        drawTextRelative(-1, 5, PrintMAH(), Color.white, Color.blue,
                            Text.ONTOP | Text.RELATIVETOBOTTOM, null, 12, 
                            "L" + getValue("rawtime"));

                        if(bDoAlerts) {
                            Alert.playSound("warning.wav");
                            Alert.addToList(FormatSI(), "Potential Elliott Long", Color.black, Color.green);
                            Alert.email("Potential Elliott Long on: " + FormatSI() + " " + FormatLongEntry());
                        }
                    }
                } else {
                    if(vPrevC < vPrevL) {
                        bInTrade = false;
                        if(bDoAlerts) {
                            Alert.playSound("beam1.wav");
                            Alert.addToList(FormatSI(), "Stopped Out on Long");
                            Alert.email("Potential Elliott Long on: " + FormatSI() + " " + FormatShortEntry());
                        }
                    }
                }

            } else if(nState == -1) {
                if(!bInTrade) {
                    if(vPrevC < vPrevL) {
                        bInTrade = true;
                        drawTextRelative(-1, 5, PrintMAL(), Color.red, Color.black,
                            Text.ONTOP | Text.RELATIVETOBOTTOM, null, 12, 
                            "S" + getValue("rawtime"));

                        if(bDoAlerts) {
                            Alert.playSound("warning.wav");
                            Alert.addToList(FormatSI(), "Potential Elliott Short", Color.black, Color.red);
                            Alert.email("Potential Elliott Short on: " + FormatSI() + " " + FormatShortEntry());
                        }

                    }
                } else {
                    if(vPrevC > vPrevH) {
                        bInTrade = false;
                        if(bDoAlerts) {
                            Alert.playSound("beam1.wav");
                            Alert.addToList(FormatSI(), "Stopped Out on Short");
                            Alert.email("Potential Elliott Short on: " + FormatSI() + " " + FormatLongEntry());
                        }

                    }
                }

            }

        } else {
            bInTrade = false;
        }
    }

    return;
    
} 

[mattgundersen]

BTW, you will need the latest beta for this EFS to work. That will be available later next week.

m.

[MR]

donv, go to "File Sharing"

Is "Advanced GET" listed in the "My Groups" listing?

If not, go to "Editor's Choice" and click on "Advanced GET"

If you are not a member of this group there should be a selection somewhere asking if you wish to "Join" and once you select "Join" you will then be added to this group asap.

Am pretty sure this will then allow you to access Advanced GET
information. Again, sorry for the inconvience. Let me know if this helps.