Elliott Wave Counting with EG

Cable

Daily

On the Daily

If 4 Purple is not a C=A then we can use the FIB projection tool again to project the possible end of
‘c” Gold which maximum at A(1.618) at 1.5210 which is just over 50% retracement of 3 Purple (shown with TICK marks near them.

Possible target levels on the right side.

Cable

H4
If price is developing Dark Orange 4 inside a wave 3 in a C as 4C34c, then target levels will have a maximum possible on that GOLD line which sets the limit prior to an overlap with 1 Dark Orange which is 1 of same degree.

Unless it develops into a 5 Purple UP.


H1 chart also attached.


Note that all these are just part of a whole bunch of possibilities.


Each one of us will have our own set of other tools in our collection to help us decide where and how we trade the market.


EG

could or Couldn't be

When you talk about INDEX.. think about Million Times..

here is Two Scenario

C failure
http://i38.tinypic.com/2qk5eoj.gif


138.2% C 3-3-5 Flat



http://i36.tinypic.com/15esnt.gif

Here is my take on the USD Index.

Possible move down on the Daily will be inline with the possibility that GBPUSD will have room to go up for the wave C of an expanding wave 4 on the 1hr and 4hr chart

EG

I do not trade GOLD.

So the charts attached here are more of an exercise.

As an exercise, I see a possibility of either a Bullish or a Bearish scenario on the E-mini-Nasdaq 100.

notes and comments are on the chart.

1hr, 4hr and Daily is BEARISH in my view using Divergence for example and momentum.

But BULLISH on the Weekly and the Monthly.

EG

Gbp/jpy

at seem 2.618 Of Y now 1.618?


http://i33.tinypic.com/2hd467c.png

Didn't Touched 143.38 level Entry

Good Morning everyone as it is 4am here in Asia.

End of US session and on the 15min chart..... Yesterday Cable was traded on a narrow range which looked like a correction. I was out the whole day so I guess I did not miss any significant action.

Now Cable has been trading in a range within the Weekly Pivot which shows higher probability of a Bearish move to me down to 1.5862-69

This is to project a (C or 3) = (A or 1) at least.

EG

1.5933 First Short trade for October 2009

Note that Daily Pivot is @ 1.5890 near the 61.8 and the FE 61.8 Levels.

Another strong Support level at this TF is at 1.5869

If the Blue Channel HOLDS ..... Then the Bullish 1 hr scenario will be in play.



0640AM PHI Update

Leaving my trade to run and extending my SL just incase. It is just likely now that price will plunge towards 1.5500. But will be setting my TP to 1.5600.

Based on 1hr, 4hr and Daily

I would say... today we have just seen the Frankfurt-London Set-up

Where you can trade London session counter trending the Frankfurt experience.

Could help the wave count sometimes and your capital too.

EG

Be it that I entered a trade assuming that price would continue to go down and that the correction was already finished

Add to this that the longer term view was DOWN in my opinion.... I entered that trade with a large SL specially because I was going to leave the trade running while I was out.

Well I came back at lunch to see that the trade was in a drawdown and it was increasing.

I did set a level for a suggested SL or when I would hedge the short trade. I guess that comes with many hours of chart watching. Anyway, I made 2 long trade earlier than the level I suggested and exited for total of 20 pips. Then watched price go higher and break that level for my suggested SL.

I did not make any trade based on how the price played out and how the waves developed. I just allowed the short trade to continue and finally it dropped.

I was able to exit that short trade a few minutes ago for 3% of my starting Capital. Total for the day is already 5.4% of total capital for the month. That is already more than what my bank would give me for an annual interest.

with patience and practice... you can make your money grow better than placing it in the bank.

Nice start for the month. Call me an early quitter now... but I will call it a night now.

I am not gonna force my trades any more.

EG

Below are charts showing how this turned out

Cable Potentials

Fhi Stat 100.0% 1.6974 To 000.0 1.4597….



You will Get


61.8 1.6152
50.0% 1.5769
38.2% 1.5551

now The base Triangle Stuck 61.8 and 50.0%

61.8% is Highly Recommended In Fibonacci .. and 50.0% Highly Recommended in Gann

At Below the Gbp/usd staying 1.5551 Second Fhi 38.2%...


Here http://i33.tinypic.com/zvyjhl.png

Cable

No trade for me yet since this morning.

I placed a Limit SELL Order @1.5985 which was in the range of 1.5063-1.6005 (Possible range of retracement). Price rise did not reach my Limit Sell Order.

Will likely take a Long trade from a possible Support trendline bounce that coincides with the Daily S1 @ 1.5844

Daily S2 is at 1.5808

Weekly S1 is @ 1.5755

EG

Removed my SELL Order. as it was not triggered while I slept.

Looking at the 1nr charts and the 4hr charts now,

A possible symmetrical triangle could be assumed from the 1hr chart which could still be in development. I am not trading the moves inside the triangle asI could not sit infront of my computer the whole day yesterday just incase something went wrong or the trade goes against me. So I stayed out of it, but placed my Sell Limit Order earlier.

Now if you check on the 4hr chart, we do not see the same potential triangle based on the Oscillator. Infact, the indicator would show Divergence now which is likely to Push GBPUSD more to the upside.

EG

My Long @ 1.5940

4hr chart
Price has been moving in a narrow range sideways for the last 47 candles. but when you go down the lower TFs, most of these are now bullish from the 5minutes to 15min charts.

The 30min and 60min look like it is nearing a completion of a wave 1 up which will be followed by a retracements for wave 2 which could bring it back down to 1.5900 level.

EG

UPDATE 1
1st Resistance @ 1.5990
2nd Resistance @ 1.6100 coinciding with WR1

WR2 is @ 1.6295

Took my 10 pips to gain 1.2% on my capital.
This was based only on the 1min chart wave count.
After almost 30 min, I see that I missed almost 30 pips more. and 5min and 15min charts are now showing divergence.

Waiting for new opportunity to enter again.

EG

Got out too early you might say... but 10 pips in less than an hour is still good. that is nearly 50% of my monthly target already and considering the other days gains, which was nearly double my monthly objective, this 1.2% is already an additional bonus.

The key here is to set realistic targets. many who start trading go for the basket of pips at once.
Our objective here is to earn. Given the amount of capital that we have to protect and earn from....
The closest comparison I could make for this is putting my money in the bank to earn interest and yet will be safe.

This is where I look at what the bank can give me for my money.

A savings deposit gives less than 1% per annum
A Time Deposit gives from 3-6% per annum
Government Bonds here are max 6% per annum

So on my part here... I set a goal of 3% per month on my capital trading 30% of my capital for a 500pip stop loss
This allows me to make a counter trade with a high probability even before it reaches 200 pips drawdown.
Otherwise, trade will be left to run to recover.

Even with this strategy which allows me to get out on 10 to 30 pips per trade, I tend to cover or harvest my objective for the month.
Consider 3% per month which totals 36% per year on your capital. That is way too far from what the banks can give me.

From the money management, we go to the psychology of trading...
A would be trader will not be able to achieve a psychological strength without proper knowledge of the market.
This leads to the point that one must study and practice first before getting into live trades while practicing.
Getting into live trades too soon will only put the would be trader into panic mode almost 100% of the time.
If your pocket is deep enough to absorb a lot of losses..... sooner or later your resources will be drained.

NEW Traders with a lot of capital tend to trade larger amounts.. overall, rate of capital wipe out for big and small capitalized traders will be the same.

So, with the knowledge of the market achieved thru studying and a lot of practice and hours of chart watching and analyzing, one is able or must be able to develop his own style of trading and strategy with which he has used profitably on demo for 6-12 months.

When trading, I subscribed to what is often said to stop chasing the trade. So avoid entering a trade when there is less than 50% probability for your trade. This is followed by the risk you are willing to take.

And lastly, conditioning your mind to taking profits BIG or small.

And for me... I set my monthly targets on what the bank will give me for a year.
Again, others would say that this is an expensive way to earn as my broker will likely earn more than I would.

But to me, that is beside the point for as long as I am not losing money.
Chasing those pips especially for new traders just so you think you can save on the spread will more often wipe out your account.

So set realistic targets and trade safely and profitably.

Cable Potentials

Update:

Placing my Long @ 1.5992. Breakout to the Upside more likely for me.

EG

Hi brothers,

Could anyone help me to find an Automatic EW tools ?


Thank you very mụch