I'm using Time based charts for the Elliott waves and Fibonacci analysis. As described in his book #1. This one is 45min, because the move fit inside 100 to 140 bars in the past. So, info on the AO are right.
For trading, I'm using Range Bar charts. It is smoothing greatly the signals. Also, I'm mainly using fractal breaks.
I'm using Time based charts for the Elliott waves and Fibonacci analysis. As described in his book #1. This one is 45min, because the move fit inside 100 to 140 bars in the past. So, info on the AO are right.
For trading, I'm using Range Bar charts. It is smoothing greatly the signals. Also, I'm mainly using fractal breaks.
Honestly, on Forex, I haven't seen much divergent bars working out...
It seems that DB are working a little bit better if you use range bars and do a good studies of Elliott waves and Fibonacci levels... I would qualify this signal as quite aggressive entry....
Personally, I don't use it as an entry, but as a sign of some possible reversal.
Usually, the next signal is a 2nd wise man or a fractal. Then, you should also starting to see some divergence on AO... Some odds are piling up and help you to validate an entry.
Honestly, on Forex, I haven't seen much divergent bars working out...
It seems that DB are working a little bit better if you use range bars and do a good studies of Elliott waves and Fibonacci levels... I would qualify this signal as quite aggressive entry....
Personally, I don't use it as an entry, but as a sign of some possible reversal.
Usually, the next signal is a 2nd wise man or a fractal. Then, you should also starting to see some divergence on AO... Some odds are piling up and help you to validate an entry.
Saying that, I had an after thought....
I'm testing some things on fast charts, like 8 range or 4 range... And it seems that DB are more reliable...
You might have a look at that. Tell me what do you think.
I tend to think that the bdbs don't work out, because the system is designed for stocks and commodities (especially commodities or commodity etfs). Yes the books show examples of forex charts, but Bill Williams admits that he has never traded Forex. For that reason the system can't just be used literally but must be adapted. For instance 1 tick is not the equivalent of 1 pip. I, also think that there are problems with his concept of angularity in Forex. It just doesn't seem as clear cut on the charts. The only way to know if a bdb is for real is to do the fib projections and find a level at which the bdb can be expected. Then you have some kind of chance of trading it successfully. Far more bdbs are produced by Forex than other markets and more of them are meaningless. People who don't use the fib projections should probably use the same techniques that the James 16 group applies to pin bars to determine when one of these is tradable. You also have to be aware that bdb on your broker's charts may not be a bdb on anyone else's. In order to see an identical chart to everyone else, you have to trade the 1 hr or lower charts.
Honestly, on Forex, I haven't seen much divergent bars working out...
It seems that DB are working a little bit better if you use range bars and do a good studies of Elliott waves and Fibonacci levels... I would qualify this signal as quite aggressive entry....
Personally, I don't use it as an entry, but as a sign of some possible reversal.
Usually, the next signal is a 2nd wise man or a fractal. Then, you should also starting to see some divergence on AO... Some odds are piling up and help you to validate an entry.
I totally agree with that !
And Fibo projection will really help to filter bad signals. But, as I said in a previous post, on range bar charts, mainly fast ones, like 8 range or 4 range, DB looks way better than on time based charts...
Quote
Disliked
but Bill Williams admits that he has never traded Forex. For that reason the system can't just be used literally but must be adapted
Yep ! that is so true ! But, the Elliott wave and Fibonacci part, BW is explaining remain perfect for any market ! As quoted in book #1, you will find a very nice development of this technique in " Elliott Wave Principle applied to the Foreign Exchange Markets" By Robert Balan. A must read !!
As you know, on a time based chart, every x minutes, a new candle appear. On a range based chart each time the price cover a range of x pips, a new bar appear.
I like it very much because it kind of smooth the price action.
I guess you are trading with MT4 ? If yes, as far as I know, they do not provide the range bar option.
I have attached a 21 range chart, just to show you how it looks...
As you know, on a time based chart, every x minutes, a new candle appear. On a range based chart each time the price cover a range of x pips, a new bar appear.
I like it very much because it kind of smooth the price action.
I guess you are trading with MT4 ? If yes, as far as I know, they do not provide the range bar option.
I have attached a 21 range chart, just to show you how it looks...
Ignored
Very cool thanks. A perfect BDB on a 5th wave.
I use GFT with trading forex. Approximately what time frame would that 21 range chart compare to?
Hummm.. You cannot really compare to a time frame... If the market is slow, it can takes hour for the price to move a range of 21 pips and if suddenly there is some action.... You see what I mean...
Just to have a look you might want to try NinjaTrader, free platform with free datas for demo.
Hummm.. You cannot really compare to a time frame... If the market is slow, it can takes hour for the price to move a range of 21 pips and if suddenly there is some action.... You see what I mean...
Just to have a look you might want to try NinjaTrader, free platform with free datas for demo.
For range bar charts, there is script for MT4. I've attached one below. There's also another one around that can be purchased from mqlservice.com. Don't ask me how to use. I've never tried it, but it looks interesting. The best way though is probably to just download ninjatrader.
