hwsteele
Experienced member
- Messages
- 1,227
- Likes
- 182
Nice thread.
Where did you place your stop on the entry you made earlier?
I believe you are correct on the direction for the next day or so.
Nice thread.
Where did you place your stop on the entry you made earlier?
I believe you are correct on the direction for the next day or so.
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
Nice thread.
Where did you place your stop on the entry you made earlier?
I believe you are correct on the direction for the next day or so.
Thank you for the nice comments. I traded a very small lot with a stop at 1.31. When I look at the big move today it looks impulsive because of the steep drop, but it still looks like everything is in threes, which means corrective. I am still leaning to think this is corrective down. 5 would be impulsive. If this current move will push above the 1.3210, then that will help make the case for this not being an impulse down. If this does go above 1.3210 then I will add another very small lot long. Anyway, here are my charts: ask any questions if you like and I will try to explain my wave counts.
Attachments
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
The Euro made it to 132.18 which breached the the low level of 13210 on the hour chart. This helps bolster the case for the euro move being corrective down instead of impulsive down. I am attaching 2 different five minute charts . One is impulsive down and one is for a corrective wave down. Either one is correct at the moment, but not on the hour chart. My experience is that the hour chart usually trumps the 5 minute chart and the day chart trumps both.
Attachments
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
Here's my hour chart today. I'm still leaning towards this being corrective, but the B wave did go further than I thought. My 1.31 stop didn't get hit today and I am currently minus 18 pips, so I'm waiting to see if the move up will be as long as I think. Here is also a 5 minute chart to go with the hour. I have drawn out a zigzag that looks as if it will top out around the 1.3260 range. If this is impulsive down that will be a good spot for a reversal. If this correction is going higher I still expect a downturn to a Fibonacci level
Attachments
Last edited:
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
I counted the section of the red box as the entire "B" wave which would have made this a running flat at a downward angle. It looks more like this is playing out into a regular flat which means B will be about equal to A. If this is the case then wave C should end around the 1.32 area instead of the 1.3175 like I thought earlier.
Attachments
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
jeanlee411
Newbie
- Messages
- 1
- Likes
- 0
more.
I'm posting a current chart and with my notes on it. That's the thing about corrective waves. They take more patience to trade because there are more possible patterns than impulse waves. I carried my short through the weekend for a nice profit, but have closed that position and am sitting out until this chart unfolds some more.
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
I agree that corrective waves are harder to read because there are more possible outcomes until closer to the end of the pattern. Please post your chart. I love to look at other people's charts so that I can learn from them. Thanks. Anyway, I am posting up my day and hour charts. The day chart is reaching a critical juncture soon and we will know if this is an ending diagonal or an impulse down.
Attachments
Does the Elliot Wave Theory have specific advantages for use in currency trading compared to other indicators?
What's a good book to study Elliot Wave Theory?
Reading your posts I think it may help you to read up on fractals or maybe familiarize yourself with spotting fractals on a chart. I read something about it {i can't remember where, though} and I get a sense it would mend well with the EWT.
What's a good book to study Elliot Wave Theory?
Reading your posts I think it may help you to read up on fractals or maybe familiarize yourself with spotting fractals on a chart. I read something about it {i can't remember where, though} and I get a sense it would mend well with the EWT.
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
I bought the book "Elliott Wave Theory" written by frost and Prechter back in 1978. They found some of R.N. Elliott's writings and studied and expanded them. Funny you should mention fractals, because that is a large part of EWT. IMO, one of the best things about EWT is that you can use it on any time frame because the charts are fractals. Frost and Prechter state in the book that EWT measures mass social mood, so it works better with bigger markets compared to smaller markets.
Here are my charts today. I think the euro is entering into wave 4, so it should go up a for a while before making wave 5 down. I just bought it at 1.2825 with a stop at 1.2750 and a limit at 1.2975.
Attachments
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
Here is my daily chart tonight. If you notice the move down, then you will notice it doesn't have any subwaves going down in wave 5. I have 2 counts here on my chart. The one in brackets is my alternate count based on a logical progression and the size of wave 5 down, ( The green 5) But since wave 5 down doesn't have any subwaves in it then I am actually leaning towards my alternate count as being correct. This would mean that wave 5 will be extended and long.
Attachments
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
Re: Applying Elliott Wave theory profitably is your aim.
I have been profitable using Elliott Wave Theory for the last 8 or 10 months now. But with that being said I lost money trying to use it for the first year. I definitely think it is a valuable tool to have in your arsenal of trading methods, but for me there is no "Holy Grail" of trading. I started trading forex over two years ago and lost more money than I earned for the first year and a half. Here are the main tools I use to trade and it has been working consistently for me for the last eight or ten months:
Elliott Wave on trending and non-trending markets:
RSI works great during non-trending markets, but it will get you killed in trending markets, and Elliott Wave lets me know when to expect non-trending times in the market:
Fibonacci retracements and extensions at all times:
Candlestick patterns at EW and Fibo turning points:
and finally I do watch for upcoming economic announcements that are of high importance because they definitely can move the market.
This is a lot of work, but I don't know of an easy way to make money unless you pay to follow someone else's advice, or pay them to trade your money for you, and I find my trading work interesting and fun, unlike other jobs I have done in the past.
I have been profitable using Elliott Wave Theory for the last 8 or 10 months now. But with that being said I lost money trying to use it for the first year. I definitely think it is a valuable tool to have in your arsenal of trading methods, but for me there is no "Holy Grail" of trading. I started trading forex over two years ago and lost more money than I earned for the first year and a half. Here are the main tools I use to trade and it has been working consistently for me for the last eight or ten months:
Elliott Wave on trending and non-trending markets:
RSI works great during non-trending markets, but it will get you killed in trending markets, and Elliott Wave lets me know when to expect non-trending times in the market:
Fibonacci retracements and extensions at all times:
Candlestick patterns at EW and Fibo turning points:
and finally I do watch for upcoming economic announcements that are of high importance because they definitely can move the market.
This is a lot of work, but I don't know of an easy way to make money unless you pay to follow someone else's advice, or pay them to trade your money for you, and I find my trading work interesting and fun, unlike other jobs I have done in the past.
JahDave
Experienced member
- Messages
- 1,563
- Likes
- 28
Here is my Euro day chart for today. Nothing has happened in the last several days to confirm either count I have. The 1.3264 is the bottom of wave 1, so if the Euro breaks above that we should have a bigger correction up and if it breaks below 1.25 it should show more weakness.
