Elliot Wave... Identification

[melteye]

I was wondering if anyone could link me to a site outlining the use of Elliot Wave analysis in daytrading. I know the basic principles but since I cannot afford GET I have no method of indentification.

Once I can actually trade profitably, I'll purchase GET once again.

[melteye]

Ok. I realize that the "Elliot Oscillator" is just a Price Oscillator. Now my question is what settings would work best for wave identification. I am currently using 10/40 SMA on a 1-min chart.

I'm also wondering how exactly the "breakout band" of the Elliot Oscillator is calculated.

[Gavishti]

GET is a nice tool, but Ralph Elliott was using Elliott Waves long before there were computers. There are many books on how to read Elliott Waves.

For starters try these;

Elliott Wave Principle by Frost and Prechter - ISBN 0-932750-43-5

Fibonacci Applications and Strategies for Traders by Robert Fisher - ISBN 0-471-58520-3

If money is an issue you should be able to get both of these through your local library.

Also search the Trading Strategies posts. There is a fair amount of EW stuff in there that can be helpful.

[fabrizio]

Melt

Rn Elliot is - by himself- really complicated to be traded.

Is really good you want to learn exactly how to count by hands the waves, but it is a really though job expecially if you like to do it on a short TF.

Albeit I wolud not advice the "c.....s" Frost & Pretchers, but rather the original RN elliot essays , articles etc in order to EXACTLY understand what he meant.

The Tom Joseph Osc in a cross of two sma at 5 and 35 period.
The band are set at the 80% of the level of the Histogram and are MA too.

The cross of the two 5 35 MA indicate with a great extent of precision , the end of a W4.

But AGET is not only that. Is many other things, that let's you trade with the max confidence and capital preserving.

Honestly I would not do the path in the opposite way.

Good luck

[soylent]

I agree w/ Fabrizio...

If you are going to day-trade -- you're stepping into turbulent waters as your first shot. Maybe you should look to 'swing trade' -- a few 1-10 day hold times.

BUT, regardless, don't look at the cost. If you plan to make money at day trading, I assure you AGET will be the smallest cost (your commissions & spreads will be $$$ per month -- AdvGet will be a very small fee).

I've been an 'investor' for years but started 'trading' 6 months ago. Trying to figure out what was snake oil and what was not was / is the hardest part.

If I could do it again (having hindsight), I would pay to take the classes. I learned a lot of novel approaches in my trial-and-error -- but, I think I would have been profitable sooner and learned other of my 'novel' approaches over time, too.

Other than that -- as the other posts point out -- read about Fibonacci. There is a lot of value in it. But AGET really puts it in a useable system.

But, finally because you're probably as stubborn as me! <smile> One more thing to look at:
As Fabrizio says, when you get a 5/35 pullback to ZERO, measure the height of the previous wave (last ZERO pullback) and see if it exceeds .62 on a fib retrace. That is -usually- a wave 3/4 and when you break a regression channel, that will be the start of your wave 5.

Advanced GET adds extra measurements / calculations on statistics, like:
- WAVE channels showing % likelyhood of a next wave
- PTI -- calculation of too much profit taking
- Ellipse -- time vs. retracement to allow you to look at a time passage vs. price loss as an entry
- MOB -- support/resistance to show targets
- XTL -- (not elliott wave stuff) but helps get identify long wave 3's

Just to show some ewaves, oscillators in practice, here's ORCL.

[soylent]

>> see if it exceeds .62 on a fib retrace

I mean: Should NOT exceed... Strong trends will not exceed .38.
.5 is great.

More than that, it gets iffy...

[fabrizio]

BUT, regardless, don't look at the cost. If you plan to make money at day trading, I assure you AGET will be the smallest cost (your commissions & spreads will be $$$ per month -- AdvGet will be a very small fee).

Melt , the wise words of soylent are "gold".

Just count how many ticks you should make a day in order to payback the monthly fee of 150$...

As well as Swing (could be a very good alternative too.)

[Gavishti]

Melteye,

My apologies. I should have warned you to ignore the advertisements in Prechter's book. Just extract the rules. Fabrizio has a point about "c.....s", whatever that means. If you can find them, the original works of RN Elliott would be very helpful.

[melteye]

Well... I have very little money to start with and AGET is $160/month. If you think it is a wise decision I will purchase it and eat less

Hmmm... Food or AGET...

[soylent]

Hi Melt --

Even more than purchasing AGET, I would recommend you take their class. (I did not -- but, I have been through their online seminars -- and, again, in hindsight, that was a costly mistake to not be properly prepared for what happens intraday). TRADING is not like anything else you will have experienced before and having a system and a teacher is well worth the price.

If you can't scrape up the course money, read EVERYTHING in the AGET downloads area by Marcus. And, put yourself in a dark room for 5 days and 'papertrade' 1,000 buy/sells using the bar-replay mode in ESIGNAL. When you can spot good setups and get > 50% right and take your stop-losses, and calculate profit targets and show a profit, you'll be ready for the real thing.

One last suggestion: Learn just ONE system. Ignore all other external influence. It's like playing golf: Change one thing and your entire game goes to 's..t'. (Is that how you spell it Fabrizio?<smile>)

[Gavishti]

complements of fabrizio:

R.N. ELLIOT's MASTERWORKS, the definitive collection" ISBN : 0-932750-37-0

You may want to do some reading and papertrading before you go without food. Going into battle unprepared is a good way to get killed.

That said, they are right that trading RT with EW is hard. GET can be of help.

[melteye]

My analysis was dead on this morning... But it just happened I couldn't fall sleep last night so I woke up late and missed a very easy move to catch! I could have easily made up for what I've lost

In the replay mode do all indicators work? I remember volume does not.

[fabrizio]

In tick replay you can have EVERITHINK working, even the Time & Sales and -indeed - paper trade. Probably not Volume .

[ACM]

FWIW Volume does plot in Tick Replay
Alex

[melteye]

Thanks for the advice and suggestions.