Article How to Trade using Elliott Waves

[T2W Bot]

We've just published a new T2W article called "How to Trade using Elliott Waves" by Dwayne Buzzell.

Quick Summary: Dwayne Buzzell explains the complex subject of Elliot Wave analysis.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.

 

[Mr. Charts]

I just love this confidence and value expressing conclusion to the usefulness of Elliot,
"In Summary
When you ask 10 experts in the field where the market currently is according to the Elliot Wave theory and what are their predictions, you will get 10 different answers and all of them more difficult to interpret and recognize than the other. The market has gone crazy and definitely not moving by any rules."

 

[wallstreetwarrior87]

I just love this confidence and value expressing conclusion to the usefulness of Elliot,
"In Summary
When you ask 10 experts in the field where the market currently is according to the Elliot Wave theory and what are their predictions, you will get 10 different answers and all of them more difficult to interpret and recognize than the other. The market has gone crazy and definitely not moving by any rules."

Well he does say it's a complex subject:cheesy:

 

[dbphoenix]

Whether or not the market "has gone crazy" and is "not moving by any rules" depends on what rules one is using.

 

[Mr. Charts]

Traders are irrational and crazy, markets do what they do. Traders must look into themselves if they think a market "has gone crazy" and is "not moving by any rules" .

If anything rules, it's price action, not wobbly lines of greater complexity and irrelevance.

 

[Lúidín]

i had to give this article a 1..as it is very bad..for a start using stocks as an example for EW trading is not a good choice..much better to use heavily traded commodities..second..the author fails to mention measured moves..as they are very important when using wave analysis..which..btw..is a very valid analysis when used with the right markets..and used in the right way
to blatantly dismiss EW analysis as silly..well..is stupid..as it the same as any analysis method used..when it is used correctly it is very effective..in fact..many high net worth commodity traders use it extensively..with very good results
the EW theory can be applied to stocks..or any markets..but work much better on pure supply and demand markets such as commodities..where you have hedgers and speculators trading large size at certain parts of the cycle
the author failed to highlight this very important fact..why..maybe he is not aware of it?

 

[NVP]

Traders are irrational and crazy, markets do what they do. Traders must look into themselves if they think a market "has gone crazy" and is "not moving by any rules" .

If anything rules, it's price action, not wobbly lines of greater complexity and irrelevance.

agreed .........

the markets movements are completely "perfect" at all times ..........its our subjective interpretations that place such labels on it behaviour :smart:

N

 

[NVP]

i had to give this article a 1..as it is very bad..for a start using stocks as an example for EW trading is not a good choice..much better to use heavily traded commodities..second..the author fails to mention measured moves..as they are very important when using wave analysis..which..btw..is a very valid analysis when used with the right markets..and used in the right way
to blatantly dismiss EW analysis as silly..well..is stupid..as it the same as any analysis method used..when it is used correctly it is very effective..in fact..many high net worth commodity traders use it extensively..with very good results
the EW theory can be applied to stocks..or any markets..but work much better on pure supply and demand markets such as commodities..where you have hedgers and speculators trading large size at certain parts of the cycle
the author failed to highlight this very important fact..why..maybe he is not aware of it?

as much as a 1 ?.............L are you getting soft ?

N

 

[Lúidín]

as much as a 1 ?.............L are you getting soft ?

N

it would be ignorant to not give him a vote..all he needed to do was post something like this..for..how the hell do you expect anyone to follow what he wrote about

 

[Mr. Charts]

Human beings seem to have a tendency or actual need to impose patterns (even in an extreme form, see conspiracies) on whatever they observe. Those observations are usually subjective rather than objective, not analytical nor scientific. They are often coloured by extrapolating previous experience and applying faulty logic. They "believe" things because they choose to.
As far as markets are concerned my approach is to only place confidence in a pattern which is logically explicable in terms of market sentiment and actual facts AND which I know from many years of experience of hundreds or thousands of instances has a high probability of proving accurate i.e. reliable statistically.
Otherwise for me personally, the likes of Elliott, Gann and a host of lesser known approaches, theories, "secrets" etc. are as valuable as seeing faces in cloud formations or so called "deities" in coffee grounds.

 

[Lúidín]

most approaches will work over time..the more you do it..the better you get at it..there are no secrets..it is just that most never gain enough experience due to risking too much on any one trade..and..not using stops

combine the 2 and you have a recipe for disaster

when one finally arrives..after years of winning and losing..it is hard to believe "how could i have been so stupid"..but..that is exactly what life is all about..experiences..some never learn from their own..and these people just keep going round in circles..much the same way a chart keeps moving up and down

however..as there is always an however..a very small few have cracked it in relation to working out the commonalities across all supply and demand markets..but..as to be expected..one is never going to see any information published about same..and..one does not have to be a genius to understand why

no matter what..all one has to do is understand that there are 2 main ways to trade..it is either trend or momentum..all strategies fall under one or the other..and certain trend strategies are by far the most profitable in relation to risk..reward..time input

no big deal really..it is just that some make it out to be..for whatever reasons

 

[myattitude]

EW are subjective to the person drawing them. They could be counted in 10 different ways by 10 separate people.