Elliott Waves



Elliott waves are one of the few studies that able to tell where the market is now, where it is likely to go next and, of course, what are the opportunities there for traders.

However, it's not a secret that to many traders Elliott waves theory is one the most difficult studies whether it comes to understanding, using it or following someone's forecast. We'll discover why.


Introduction
Elliott Waves Basics
Elliott Wave Patterns
Elliott Wave Rules
Elliott Waves Indicators
Elliott Waves - Beginner steps
Elliott Waves - Trading plan
Elliott waves and Fibonacci
Elliott waves - Fibonacci click-by-click
Elliott waves and Bollinger bands


Idea behind Elliott Waves



Elliott Waves were introduced by Ralph Nelson Elliott in the 1930s for stock trading.

The theory is based solely on the phenomenon of mass psychology, which more often than not predetermines the outcome of the market behavior.

mass behaviour => market behaviour


Elliotticians, among which are many top tier technical analysts from banks and leading investment institutions, like to use the knowledge of Elliott wave principles to understand mass investor behaviour and thus make forecasts about the market behaviour.


Polar opinions on Elliott Wave theory


Against For
Elliott waves have a huge degree of subjectivity. If you ask a group of Elliotticians to identify Elliott waves on the same chart they will most likely come up with several different wave counts. The key to trading Elliott waves lies in not being always correct on the wave count, but rather finding the ways to get the least penalty for being wrong. While there are certain small windows in each price move, which promise some amount of profit regardless the actual wave count as long as direction is known, and that's what the Elliott wave theory does.
Elliott waves have a complex myriad of patterns and rules.

Elliott wave traders look for an entry price that is close to support & resistance levels. Then if the level is broken, they exit with minimal losses and the wave pattern will be nullified. However, if the wave count was correct, it will make profits two to five times the amount risked.
There are only 3 hard-coded unbreakable rules recognized in Elliott Waves theory, while the rest of the rules can have alterations, exceptions and are allowed to fail, which makes it the endless world of possibilities.


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Another great contribution from you. And your explainations are the best out there. ;) Again i want to thank you for doing this. :D

I have not read it yet but will be reading in future. Hope by then you will the other 3 topics will be updated.

 

sir i need elliot wave forecaster where i get pls post

 

I don't know or have anything similar to that, sorry.

 

You made mistake under Elliott Waves Basics link in third picture from top between 1,2 and 3,4 numbers.
Letters a,b,c aren't in correct order.
Am I right ???
Anyway your website is the best i came across so far.

Thanks

 

You're right! Letters A and B should be swapped. It's a very fine finding in such a busy illustration. Thank you for paying great attention to details!
It's been fixed.

 

I found this page while searching for more explanations about Elliott waves! But since I read it, Your articles made me not to complicate the issue! Now I got the code! Thank you!

 

So difficult.

 

complicat bt easy

 

good

 

thank you

 

using ZigZag indicator might help identify elliot wave patterns, see:
http://codebase.mql4.com/265