MT4-Elliott Wave Analysis

Hello everyone,

In addition to being a big fan of Fibonacci price projections, I am also a huge fan of Elliott Wave analysis. Why? Because one will tell you potential reversal points, while the other will tell you the position of the market. Combining the two is a killer combination.

But, as we all know, MT4 does not come with an EW indicators and it will most likely will not, but that should not be a problem. You really don't need a super indicator to do the count for you since having a specific count isn't really the issue. You can do well with simply understanding the basics of the Elliott Wave principal and just trade when the count is clearly visible, other wise just stay out of the market.

To that end, I have found an indicator on the MQL code base that is just fantastic (thanks to whomever created it). I am experimenting with it right now and would like to open this thread for discussion on currency forecasting using that indicator. I have attached the indicator to this thread for others to use.

So, attached it to your favorite instrument and let us discuss our forecasts to the market.

Here is mine:

In the figure below you will see two degrees of forecasts, the larger degree shows waves 3 and 4, with a projection for wave 5. In addition, you will see the projection of the lesser degree for waves 1 and 2 of wave 5. So, my analysis is forecasting a continued uptrend to the 1.31000 range. So, I took a long trade at 1.29804 with a stop loss set at the low of wave 4 pivot. I used this point since if my count is correct, price should advance beyond wave 1 of the lesser degree. I set my profit target at 1.30790, which slightly lower than than the target area (to be conservative).

Now, even though I am bullish on the EURUSD cross, I do realize that we are nearing the end of the bullish trend, since wave 5 of the larger degree is commencing and it will be followed by a corrective move higher in magnitude in time and price than all previous corrections in the bullish trend preceding the correction. That is also why my profit target is lower than the anticipated price target for the larger and lesser wave 5 and wave 3, respectively.

Also, please note that I have take this trade relying solely on EW analysis and with no supporting indicator because I want to sharpen my skills with EW analysis without influence of any other indicators. I am in practice mode right now.

I would really love it if other Elliott Wave enthusiasts to join me in using this indicator and participate with me in forecasting the markets.

Note: I am only allowed to start threads in this category of the forum. If the moderators believe the thread should be moved, please do so at your discretion


Cheers,

Hello everyone,

So here is the trade that I took with my usual average cost entry. I expanded the wave labeling to 3 degrees of waves. Yellow is the largest degree, followed by the green, then magenta for the smallest degree cycle.

Based on my analysis I see the market is in the process of completing wave 5 of the larger degree, wave 3 of the intermediate degree and wave 3 of the lesser degree. So the consensus is for a long position.

Note how I have a ? next to wave 2 of the lesser degree since it is still not confirmed (and technically wave 2 of the intermediate degree is not confirmed either). They would both be confirmed with they take out the extreme point of wave 1 for their respective degree). My assumption here is that both corrective waves will exhibit an ABC corrective pattern, although it is possible for both waves to exhibit a complex corrective pattern instead similar to what happened between waves 1 and 2 of the larger degree wave

I would be highly interested in others evaluation of the market

Cheers,

Hey, i dragged the indicator on EURUSD chart but it did not show any wave counts? what did i do wrong?

Ok! So apparently I have my count way off. The market has broken through the extreme of point 4, so this invalidates point 4 and I would have to re-evaluate my count.

Anybody has any thoughts on a plausible count?

Cheers,

Hello there,

The indicator does not automatically count the waves for you, it is a tool that you will have to manipulate manually.

The first thing you need to do is to identify a potential EW pattern on your favorite instrument visually, then you would draw a trend line between the two swings that make up your suspected wave 1. Once you do that then you double click on the trend line and in its properties rename it to "1 wave" (without the quotes). Once you do that refresh the chart. The indicator should now plot future wave 2. The predicted wave two may not be accurate so you need to double click on this new trend line and move it to the low of wave 2 pivot, then rename it to "2 wave." Repeat this step as new predictions occur until you reach the most current bar just like i did on my charts.

A more detailed explanation is found here: http://codebase.mql4.com/6272
I hope this helps.

Regards,

I tried this indicator but nothing appears on my chart. Please guide me