Elliott wave or PA system? | Forex Factory

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Elliott wave or PA system?

  • #1
  • First Post: Dec 8, 2009 3:25pm Dec 8, 2009 3:25pm
I have been trading FX about 1.5 month now, (paper). and to this point, I could not reach consistent profit, and ususally have strings of losses followed by a couple of wins if i get lucky.

I used to be confident in my "system" or "method" of trading. And now i know that price doesn't behave so very predictably like i thought it would be, and i have no idea what im doing when i put on a trade. Basically I use H4 and D1 charts mainly to find horizontal S&R, I buy on breakouts and at the meantime set my SL below a Support while i long. yet recently had a bunch of losing trades which leads me to doubt my system. for example, EUR/USD reached a strong support at 1.48 and whipsawed back and forth intraday like it was nothing.

Instead of investing my money to trade, I plan to invest all my capital into some form of education. I want to learn a system that i can make consistent money off of, and a system that is "universal" which works on any pairs. There are lots of good trading system on the forum and i don't know which one to get into.

I am still a candlestick fan, and wish to incorporate them into my trading. so far, I feel like i am at a cross road, having to chose either between PA systems (such as Stratss "long term stress free", J16 PA sytem, ) or Elliott Wave systems.

Any consistent winner in here that abide by either system of trading, or can make any recommendation on what i should learn?
  • #2
  • Dec 8, 2009 4:07pm Dec 8, 2009 4:07pm
Why should those systems contradict each other?

When a Pinbar is formed where you'd expect the end of Wave 5 according to Elliot Wave theory why should you ignore it?
  • #3
  • Dec 8, 2009 4:08pm Dec 8, 2009 4:08pm
Quoting Tjpld
Why should those systems contradict each other?

When a Pinbar is formed where you'd expect the end of Wave 5 according to Elliot Wave theory why should you ignore it?
its not that they contradict each other, but that each system are already effective by themselves. I would like to know some recomendation on which sort of system i should strictly focus my attention on, and possibility purchase their education
  • #4
  • Dec 8, 2009 4:10pm Dec 8, 2009 4:10pm
Quoting halfstep
I would like to know some recomendation on which sort of system i should strictly focus my attention on, and possibility purchase their education
That is only up to you what you like best. No one can help you there.
If some systems were better than others why should anyone trade the bad ones?
  • #5
  • Dec 8, 2009 4:14pm Dec 8, 2009 4:14pm
Hi halfstep,

Elliott Wave is not that good because we don't know if it is wave 2 or A or 5
Best thing I know when I begin trading 5 years ago is fibonacci to predict
dynamic entry and target trade. With a good management you will be successful.

Arto

http://artolinho.mt4stats.com/
  • #6
  • Dec 8, 2009 4:29pm Dec 8, 2009 4:29pm
Quoting arto
Hi halfstep,

Elliott Wave is not that good because we don't know if it is wave 2 or A or 5
Best thing I know when I begin trading 5 years ago is fibonacci to predict
dynamic entry and target trade. With a good management you will be successful.

Arto

http://artolinho.mt4stats.com/
Good stuff : ). I have heard people using fibs as part of their system, but i only know how to draw retracement up and down a swing hi-lo. how do you use fibs?

What is your method to trading?
  • #7
  • Dec 8, 2009 4:43pm Dec 8, 2009 4:43pm
I use fibonacci numbers 34,55,89,144,233 for daytrading
I watch 1 h chart and try to find weak support and resistance levels to enter trade
I watch 4h to find hard support and resistance level to predict where the price will stop.
I use an indicator that give average daily range for many period you find that indicator in that forum it's TSR Daily.
I have high probability in my trades in all pairs, of course you need experience to see good trade, you need a good calculator for 2%/trade and a risk/reward ratio of 1:1.
It takes me 30min/day before going to sleep, next day after my dayjob I analyse and improve my trades of course you can't be right everytime.
good luck

Arto
http://artolinho.mt4stats.com/
  • #8
  • Dec 8, 2009 4:51pm Dec 8, 2009 4:51pm
Quoting arto
Hi halfstep,

Elliott Wave is not that good because we don't know if it is wave 2 or A or 5

I bet quite a handful of traders would beg to differ.
You don't know anything for sure with other systems either...
Just because you don't fully understand something doesn't mean it's bad.
  • #9
  • Dec 8, 2009 5:26pm Dec 8, 2009 5:26pm
I don't say elliott wave is bad I mean it's not better than any other system nothing special at all. I trade Elliot wave last for many months it take time to analyses charts it's not easy it's my opinion.
I think you don't need to purchase anything in forex just read free information on internet and forexfactory.

Arto
http://artolinho.mt4stats.com/
  • #10
  • Dec 8, 2009 5:39pm Dec 8, 2009 5:39pm
Quoting arto
I use fibonacci numbers 34,55,89,144,233 for daytrading
I watch 1 h chart and try to find weak support and resistance levels to enter trade
I watch 4h to find hard support and resistance level to predict where the price will stop.
I use an indicator that give average daily range for many period you find that indicator in that forum it's TSR Daily.
I have high probability in my trades in all pairs, of course you need experience to see good trade, you need a good calculator for 2%/trade and a risk/reward ratio of 1:1.
It takes me 30min/day before...

ummmmm 34,55,89,144, and 233 are not fibo lines. just cause theyre drawn on the chart use the fibo tool doesnt make them fibo lines. so going around speaking the benefits of fibo lines only works when you are using actual fibo lines.
  • #11
  • Dec 8, 2009 5:44pm Dec 8, 2009 5:44pm
Quoting arto
I think you don't need to purchase anything in forex just read free information on internet and forexfactory.
I second that. No one has ever learned to ride a bike from a book.
Only trading makes you better. A System alone won't make you any profits.
  • #12
  • Dec 8, 2009 5:46pm Dec 8, 2009 5:46pm
34,55,89,144... are fibo lines

Arto

http://artolinho.mt4stats.com/
  • #13
  • Dec 8, 2009 6:10pm Dec 8, 2009 6:10pm
Quoting arto
34,55,89,144... are fibo lines

Arto

http://artolinho.mt4stats.com/
how?
  • #14
  • Dec 8, 2009 6:52pm Dec 8, 2009 6:52pm
Quoting arto
34,55,89,144... are fibo lines

Arto

http://artolinho.mt4stats.com/
more importantly, how do you use them on your chart? are they in percentage form, and you use them to measure retracement on a swing hi-lo or is there some other sort of method here?
  • #15
  • Dec 8, 2009 7:01pm Dec 8, 2009 7:01pm
Quoting arto
34,55,89,144... are fibo lines

Arto

http://artolinho.mt4stats.com/
oh i get it. those ARE fibo NUMBERS but they arent fibo LINES. fibo lines are based on the golden ratio idea. each fibo number divided by the next number in the sequence yields 0.618. if you divide that same number by the second succesive number, you get 0.382. if you divide the first number by the third succesive number, you get 0.236. put these into percentages and you get 61.8%, 38.2%, and 23.6%. for the other two common fibo lines, 50% and 76.4%, 50% is merely halfway between 100% and 0%, while 76.4% is 100% - 23.6%. this one is used to balance out the lines. also, 61.8 happens to be 100 - 38.2. just an interesting sidenote.

the way you are using fibo lines on the chart, if you are inputting those numbers into your fibo tool, have no bearing or impact on the market. technically, neither do the regular fibo percentages, but at least those are said to be a sort of sentiment/psychological indicator. they work because everyone uses them etc. but with your lines, since no one else even uses them, they dont even have the psychological thing going for them.
  • #16
  • Dec 9, 2009 3:58pm Dec 9, 2009 3:58pm
Hi,

daily volatility + Fibo numbers + fibo lines = system of day trading
I have an entry, stop loss and target that's all I need.
I look 4h time frame to watch where the support and resistance is and
I enter in 1h hour time for next day with stop orders.

Arto
http://artolinho.mt4stats.com/
  • #17
  • Dec 10, 2009 6:41am Dec 10, 2009 6:41am
I still don't get it how... care to explain?
Be a sniper not a jumper
  • #18
  • Dec 10, 2009 7:07am Dec 10, 2009 7:07am
I use fib numbers (as described by arto, but on the 1H chart), fib retracements (382, 500, 628, 786) and fib extensions (-27, -618, -786 and -1.27). The "trick" is to find which one is best on each currency pair you trade.
  • #19
  • Last Post: Dec 11, 2009 3:47am Dec 11, 2009 3:47am
Quoting halfstep
I want to learn a system that i can make consistent money off of, and a system that is "universal" which works on any pairs.
Each instrument has different behaviors. Good luck.
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