Type 1 set-ups..

[1tony]

Hi, I would like to know if in a scenario where we have a typical potential T1 set up ,so with PTI > 35 with prices holding above the retracement channels and a breakout either from the regression channels or the DMA , the trade will still be valid with the Elliott oscillator not near the zero line, and so not confirming.
Thx

[MR]

The only scenario where it might be possible, in a very general sense, is if the current Wave 3 ends up extending itself and the wave 4 correction you are looking for turns out to be relabeled in internal wave 4 within say a bigger wave 3 in progress???

[1tony]

Thx Marc but still, talking in general terms, would you take the trade in this case or not?

[1tony]

Marc for clarity I have added a chart ,I hope it helps

[fabrizio]

Marc May I step in?

1tony:

IMHO and after the greta technical answer from magister Marcus I would add my 2 cents :
The trade sholu ìd be taken for the following reasons:

A) Take different counting s and different Osc and see what happens. I cannot since I have not your excange activated.
B) Even if not "Orthodox" your risk is very limitated. AMOF it coul be just a retracement of a w3 not bringing to a really close W4
C) again the trade could vbe afforded with at tight stop at 0.333 retr.
D) VERY PECULIAR AND IMPORTSANT you have a simmetrical pattern in formation: A=B in time movement wich would foresee a at least a B=D or better an AB Up = CD up.
Consider the minirally of this Tanksgiving week and the prpoension of SPX to get to range 60 and you'll msee that your trade is still not totally orthodaox but worthwhile to be afforded, with a tight trailed stop........

Hope I helped and I apologize with you and Marcus if I stepped IN.
I do apologize either if no chart is in but I have no such a Exchange on my ranch.

[1tony]

Thx Fabrizio , you've been very helpful

[MR]

Hi Tony and Fabrizio,

Originally posted by fabrizio
Marc May I step in?

Any help and insights are always grately appreciated. (I am actually on vacation this week, so help offered is doubly appreciated.)
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Tony, is this stock something from the Amsterdam exchange? I tried to take a look at the stock basis your chart symbol shown below. I loaded up more than 100 data bars, looked the the monthly, weekly, and this daily.

If there were no weekly or monthly MOB above the immediate price I would have no problem considering this a quality T1 buy setup. I personally think it will eventually push above the lower MOB to work to test the next resistance level; hence, one idea is to use either the Short or Normal Ellipse arrival to setup an aggressive T1B setup idea? (I prefer the Normal Ellipse) and then just use the lower end of the Ellipse as a very simple stop loss below the Ellipse?

You would want the 5/17 Oscillator to stay above the 1.4, the 5/35 Elliott Oscillator has pulled back to the 90% and if it continues to hold above the 1.4 this oscillator is ok. It is possible you could go to a shorter time frame and try and frame up a better risk/reward idea.

[1tony]

Thx Marc for your answer, it is indeed ABN Amro traded in Amsterdam.
I came up with this question because recently quite a few of the European stocks I follow where exhibiting this kind of pattern.