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TOPIC: Using Elliott waves on shares

Using Elliott waves on shares 26 Oct 2012 16:48 #1

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Using Elliott waves on shares 26 Oct 2012 16:46 #2

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Just trying to understand Elliott Waves.

Had a go on EMG Man Group. (just picked a share, got to start somewhere!!)

dl.dropbox.com/u/21384991/EMG%20Elliott%20try.JPG

Any comments would be most welcome.

Rule 1: Wave 2 cannot retrace mre than 100% of wave1.
Rule 2: Wave 3 can not be shortest.
Rule 3: Wave 4 cannot overlap wave 1.
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Using Elliott waves on shares 22 Oct 2012 16:51 #3

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(Wye aye man), yes Jackozy the blog that MRA4 and Remo mention should be interactive (to make sure of understanding in a confusing area for most).

Agree REMO, “You are a brave man explaining Elliott’s as I was pulling my hair out and confusing myself when I was doing it for so long. It can take over.” - Can always forget the waves and go with the tide.

As Jackozy says “I use it to eliminate certain possibilities” EWT could be a useful addition to the armoury.

Look forward to the blog, thanks.
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Using Elliott waves on shares 22 Oct 2012 09:44 #4

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No problem, remo.

I guess EWT appeals to my mathematics background. When I was first reading the Comprehensive Course on the Elliott Wave Principle I was taken straight back to my 1st year at Newcastle Uni and the pure maths element of my course. Not really sure why but EWT did remind me of those days, so long ago now!!

Would an EWT blog be interactive? I think subjects like that are best as a discussion rather than a "lecture"...
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Using Elliott waves on shares 22 Oct 2012 09:09 #5

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Jackozy.
The blogs all yours mate..
You are a brave man explaining elliots as i was pulling my hair out and confusing myself when i was doing it for so long. It can take over.
It would be great to have someone help others understand this art.
Your spot on about the fibs and elliots. They sure do go hand in hand perfectly. Thats one of the easiest way to be able to understand the fibs via elliot. From every wave you can do a fib for the next wave down. Like jackozy said you cant do a wave from wave 1 bottom to wave 3 or 4 top.

ill create a new category for elliots as im sure its gonna be asked soon.

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Using Elliott waves on shares 22 Oct 2012 08:52 #6

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Yes, I use EWT on shares and have found it very useful. It gives me context for where in a trend the price is.

Oddly, it's probably most useful for helping to determine where in a pattern or trend the price ISN'T rather than where it is ie I use it to eliminate certain possibilities. For example, if there's been a downtrend on the daily chart and then we have a move up, we can look at the detail of that move up to se whether it's a new impulse wave up (it'll have 5 subwaves) or simply a correction in the downtrend (it'll have 3 waves up).

Also, IMHO, if you use Fibs for your charting then you really ought to have a fairly decent understanding of EWT because Fibs should be drawn to the correct waves; there's no point drawing a Fib from the bottom of wave 1 to the top of a wave 3 for example. This link between Fibs and EWT is down to the basic assumptions Elliott used when setting out on his analysis. Fibs (the "Golden Ratio") automatically follow from those assumptions.

I've read many times before that EWT should only be used on indices or high volume currency pairs, but then I also remember that when I first started posting on III's CV I was told that TA couldn't be used on AIM stocks. In my opinion, all that really matters is that there is sufficient VOLUME to give a good representation of crowd behaviour in the relevant instrument. On that basis, and since Elliott's original goal was to see if there was a pattern to the Dow Jones due to crowd behaviour, if you can use some elements of TA on a share then why can't you use them all? What determines which TA tools can be applied or not?

I'm happy to help explain/teach EWT as I've spent a great deal of time studying it (though I'm far from an expert!) and, as I said earlier, I've found it immensely helpful in my trading. We must always remember, though, that it does carry a great deal of subjectivity to it and there are (nearly) always alternative counts and views.

:S
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Using Elliott waves on shares 21 Oct 2012 23:24 #7

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When i get some time i will be adding the basics to the learning section...
That should be fun :woohoo: :woohoo:
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Last Edit: 21 Oct 2012 23:25 by remo.
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Using Elliott waves on shares 21 Oct 2012 22:55 #8

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I understand you not wanting to teach this, Maybe people could just talk about the big main waves on the indices & not the sub waves, but the basics in the learning section would useful for everyone to understand what an Elliott wave looks like.
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Using Elliott waves on shares 21 Oct 2012 21:53 #9

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I personally only use it on indices
I know a few use it on shares so if it works for them great.
I could put a section on the forum for elliots wave if people so wish.
But im staying clear of that subject as its hard to teach...lol
The basics is easy but then the advanced just does your head in.



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Last Edit: 21 Oct 2012 22:12 by ronnie.
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Using Elliott waves on shares 21 Oct 2012 21:37 #10

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Elliott waves & shares,I would like people’s views on using Elliott wave principles on shares, as I’ve always thought it should be used on the indices only for it to be reliable eg. dow, FTSE, but just my view may be wrong in thinking this, maybe we could have an Elliot wave section on the chartsview forum or in the learning section for the basic understanding of the wave principles, I understand the 1,2,3,4,5 & ABC main wave basics.
imagesCAWA8XMS.jpg
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