If you take any of the futures or stock magazines, you will see articles written every month on a brand new technical analysis system. How would that compare with most other systems?
^^ How much can accuracy be increased by doing this?Ī If you focus on the Wave 3, the pullback in Wave 4 and the subsequent ** new high in Wave 5, along with some of the proprietary indicators that I have designed, the accuracy range can be pushed higher upward of 65% to 75% depending on how long you have been working at it. And by giving up 8% of the potential move, you are increasing the accuracy of your trade. From my analysis, by waiting for a confirmation, you are only giving up 8% of the potential move.
Whatever techniques you use, the market has to give you confirmation that the Elliott Pattern is intact and then and only then would you take the trade.Ī lot of traders will say 'Oh my god! If I have to wait for the market to turn around before I make a trade, 1 am going to miss out on a lot of the profits.' They are wrong. Physical confirmation can be obtained from trend channels or by using parabolic trailing stops. Even during these easily predictable patterns, you still have to wait for physical confirmation from the markets. But wouldn't most people try to anticipate the waves?Ī Confirmation of a trade is very important. QYour system would therefore require you to wait for confirmation of a signal before you take a trade. In other words, if you focus only on this portion of the Elliott wave analysis that is crystal clear, then it is perhaps the best system out there. During the formation of these patterns, 90 out of 100 Elliott Wave experts will agree with the count.
However there are certain sections of the Elliott wave patterns that can be identified easily. Q Since Elliott Wave is so subjective, have you ever thought of using other technical analysis theories or techniques?Ī 1 agree Elliott Wave is a very subjective form of analysis. The following interview with Tom Joseph explains more on how Elliott Wave theory and his system work.