Elliot Wave for Short/Medium Term Traders? | Forex Factory

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Elliot Wave for Short/Medium Term Traders?

  • #1
  • First Post: Jun 12, 2006 4:01pm Jun 12, 2006 4:01pm
Hi everyone,

I am a newbie and trying to establish myself in FX world. I am kinda interested with Elliot wave theory and wondering if it is useful for short or medium term trading... I dont have big capital to start, so i am looking to collect profit everyday and perhaps 4-5 positions open daily. I hope this thread can be of assistance to those who apply EW technique. Let's learn together. EW daily analysis is welcomed.

Keep in touch.
{Link Removed}]
  • #2
  • Jun 12, 2006 4:16pm Jun 12, 2006 4:16pm
Most reliable Elliott Wave trades are taken on longer time frames.

Elliott's basic priniciples are founded in Charles Dow's theories on market movement. The movements take time to transform into the necessary wave patterns.

I would expect 2-3 good trades a week on a single pair.
Capital Preservation is key to long term wealth accumulation
  • #3
  • Jun 12, 2006 4:23pm Jun 12, 2006 4:23pm
I have seen some efforts done by some people to match the price action in Forex with Elliott Waves. To be honest with you I would be more than happy to find a way to benefit from Elliott Theory when I'm dealing with this market. However, I personally didn't find it very useful (this can be due to lack of experience or misunderstanding of Elliott's).

Anyway, it's up to you but I suggest an easier approach like Wilder's methods of analysis (i.e. a combination of RSI, ADX, and Parabolic). I found them very useful when I use them along with chart pattern analysis techniques. If your charting system supports them they can really help you.

You may also find the following article useful. It's about Bollinger Bands and Elliott Wave.
http://transcripts.fxstreet.com/elli...ves/index.html


Quoting kenari05
Hi everyone,

I am a newbie and trying to establish myself in FX world. I am kinda interested with Elliot wave theory and wondering if it is useful for short or medium term trading... I dont have big capital to start, so i am looking to collect profit everyday and perhaps 4-5 positions open daily. I hope this thread can be of assistance to those who apply EW technique. Let's learn together. EW daily analysis is welcomed.

Keep in touch.
  • #4
  • Jun 18, 2006 12:40pm Jun 18, 2006 12:40pm
forget elliot waves, i have elwave 7.6 and believe me, no software would be better in eliot waves than this software. (it tries up to 200000 combinitions on one char, to find the best result based on the elliot waves theory) I used it for some weeks and tried to get at least one pattern, but there were no...
It seems that elwaves is just a theory which dont fit more than 50%... And i payed a lot of money on that programm, i hate it...
I'm getting there ... slowly
  • #5
  • Jun 18, 2006 12:59pm Jun 18, 2006 12:59pm
Some say it's a dead end... although, this was the first thing I was studying when learning forex, they had me for a moment.

I guess it's just it - a theory. Hard to apply in real life.

Dane
  • #6
  • Jun 19, 2006 9:15am Jun 19, 2006 9:15am
agree toatally on you dane!
I'm getting there ... slowly
  • #7
  • Jun 19, 2006 11:09am Jun 19, 2006 11:09am
Funny thing about Elliot is that he actually never published his theory, all there is out there in form of books was published by his followers. If you are really interested, the best one is probably "Elliot Wave Principle" by A.J Frost and Robert R. Prechter.

Dane
  • #8
  • Jun 19, 2006 2:15pm Jun 19, 2006 2:15pm
Guys, it's not about if it's just a theory or not, it's about how every trader apply it to real life trading.....

One of the large successful traders interviewed by Jack Shwager in Market Wizards attributed a large portion of his success to the Elliot wave principle because it always allowed him to establish excellent risk/reward positions...So it's basically how you trade using the Elliot wave analysis...Just take the best of the best with the best risk/reward ratios and for sure you will be ahead...


Thanks,

Nader
  • #9
  • Jun 27, 2006 11:00am Jun 27, 2006 11:00am
Quoting narafa
Guys, it's not about if it's just a theory or not, it's about how every trader apply it to real life trading.....

One of the large successful traders interviewed by Jack Shwager in Market Wizards attributed a large portion of his success to the Elliot wave principle because it always allowed him to establish excellent risk/reward positions...So it's basically how you trade using the Elliot wave analysis...Just take the best of the best with the best risk/reward ratios and for sure you will be ahead...


Thanks,

Nader
In my opinion a good trader can make predictions based on migratory birds flight patterns and still be profitable.

There is no single thing that makes a trader successful. There is just so much of subconcious discretionary decisions that any method can be traded profitably or without success, depends who is trading.

I tried EWT and it was all great until I sat down in front of my computer - I just couldn't apply it in real time... If you can, that's great, maybe you see things that I can't see. But then again - that's discretionary trading.

Dane
  • #10
  • Jun 27, 2006 6:31pm Jun 27, 2006 6:31pm
Quoting great*dane
In my opinion a good trader can make predictions based on migratory birds flight patterns and still be profitable.

There is no single thing that makes a trader successful. There is just so much of subconcious discretionary decisions that any method can be traded profitably or without success, depends who is trading.

I tried EWT and it was all great until I sat down in front of my computer - I just couldn't apply it in real time... If you can, that's great, maybe you see things that I can't see. But then again - that's discretionary trading.

Dane
Agreed....You can make profits out of discretionary trading, while others can't...It's just how you are using the strategy, how you understand what's behind it...As long as it makes sense from the trading point of view, it can be profitable according to how it is being used....I am sure that hundreds of traders use the simple MA crossovers, yet everyone is saying that such a strategy won't make anyone any money...I disagree with this to some extent, because I am sure that there are some traders out there who still use the MA cross overs & still make money...

The theory is not important, it's the application that makes the trader either make money or lose money...


Thanks,

Nader
  • #11
  • Jun 27, 2006 6:41pm Jun 27, 2006 6:41pm
Quoting narafa
Agreed.... (...)

The theory is not important, it's the application that makes the trader either make money or lose money...


Thanks,

Nader
Yes! This is exactly what I meant.

Happy trading,

Dane
  • #12
  • Jul 1, 2006 1:30pm Jul 1, 2006 1:30pm
Quoting kenari05
Hi everyone,

I am a newbie and trying to establish myself in FX world. I am kinda interested with Elliot wave theory and wondering if it is useful for short or medium term trading... I dont have big capital to start, so i am looking to collect profit everyday and perhaps 4-5 positions open daily. I hope this thread can be of assistance to those who apply EW technique. Let's learn together. EW daily analysis is welcomed.

Keep in touch.
Go here http://www.forex-tsd.com/general-dis...fessional.html

Happy trading !
EKO
  • #13
  • Jul 2, 2006 10:41am Jul 2, 2006 10:41am
Also here http://www.moneytec.com/forums/f59/t...-elliot-15582/

Happy trading !
EKO
  • #14
  • Aug 21, 2008 2:30am Aug 21, 2008 2:30am
Quoting kenari05
Hi everyone,

I am a newbie and trying to establish myself in FX world. I am kinda interested with Elliot wave theory and wondering if it is useful for short or medium term trading... I dont have big capital to start, so i am looking to collect profit everyday and perhaps 4-5 positions open daily. I hope this thread can be of assistance to those who apply EW technique. Let's learn together. EW daily analysis is welcomed.

Keep in touch.
Should be used in medium long Term.
The market can stay irrational, longer than you can stay solvent.
  • #15
  • Last Post: Aug 21, 2008 6:42am Aug 21, 2008 6:42am
Quoting kenari05
Hi everyone,

I am a newbie and trying to establish myself in FX world. I am kinda interested with Elliot wave theory and wondering if it is useful for short or medium term trading... I dont have big capital to start, so i am looking to collect profit everyday and perhaps 4-5 positions open daily. I hope this thread can be of assistance to those who apply EW technique. Let's learn together. EW daily analysis is welcomed.

Keep in touch.
Should be used in medium long Term.
The market can stay irrational, longer than you can stay solvent.
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