Disliked{quote} EW is not a contrarian trading technique, it is this (following the market where it turns): {image}Ignored
EW is science about mass psychology.When this mass of people in their emotional state and peer pressure/encouragement is herding in one specific direction,EW is giving you plenty of signs on small charts that trend or this particular mass mania is ending for good.Sometimes market is so gracious to give you to a pip exact contrarian entry point with enormous risk/reward ratio.Exactly such situations made Tudor a billion dollars.By the way I respect the man a lot for what he did and I also keep some favorite quotes from him.But in this particular statement it seems he was dishonest,but I will not go that far because I don't know the context...He made his fortune thanks to work of Robert Prechter when he was in his zenith.And Prechter is on record that some people at that time were begging him not to disclose everything about EW so openly.Probably this Tudor's statement is from that period.
A little anecdote:some 6 years ago when I was following only EURUSD which is most liquid thing in our universe,I witnessed on 1 min. chart one Friday evening when I was already exhausted after heavy trading and most people already left,a perfect ending contracting diagonal with perfect internals and 2-3 pips SL.I didn't have any psychological power left so I didn't dare to take it(at that time I was trading with too much risk per trade).Sure enough,pair plunged 60 pips in half an hour and that was only beginning.You do the math and you will understand why such psychologically ruthless person as Tudor is self made billionaire.
More often market is not so generous,but as I just demonstrated on AUDUSD ,it is generous enough to give us early entry points on 1H chart when everybody is still looking to the other side or happily sleeping.When you have 90% or more people against you,that is contrarian in my vocabulary.