Do Elliott waves work? | Forex Factory

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Do Elliott waves work?

  • #1
  • First Post: May 23, 2013 6:42am May 23, 2013 6:42am
Nothing new about this subject, We all know about elliot waves, The theory is very simple but in reality elliot waves are more complex and takes years to master ,I am not a elliottician , I see lot of people swear by it meanwhile in the same time most of the traders give negative opinions about elliot waves, Some say that elliot waves don't even exist ,So is there anyone who uses elliot waves in their analysis, Is elliot waves working for you? Please share your opinions and ideas

Eagleprice
  • #2
  • May 23, 2013 6:52am May 23, 2013 6:52am
Use it all the time in trading. Have worked with it for over 30 years. It is not easy to master. I take many many many years to do so. Lots of idiots will tell you it does not work. That is because they do not understand how to count.
  • #3
  • May 23, 2013 7:56am May 23, 2013 7:56am
Quoting Gerogeee52
Lots of idiots will tell you it does not work. That is because they do not understand how to count.
So you're starting off the discussion about it by calling anyone who has an opinion different from yours an innumerate idiot, before they even post?

That's going to make for an enjoyable and productive exchange of views, isn't it? On second thoughts, I think I'll just leave you to it ...
  • #4
  • May 23, 2013 9:15am May 23, 2013 9:15am
It works. Smaller time frame is also respect to EW, but it is just too fast too furious. Meaning to say wave distant is small and fast to complete a wave in smaller time frame. Therefore, EW at smaller time frame is very difficult to be seen by our naked eyes. So someone would say there is no EW. This is incorrect.

Usually the support and resistance line is also the EW support and resistance, that is why price is always bound back from important price level.
  • #5
  • May 23, 2013 9:22am May 23, 2013 9:22am
Quoting ~bull.bear~
It works. Smaller time frame is also respect to EW, but it is just too fast too furious. Meaning to say wave distant is small and fast to complete a wave in smaller time frame. Therefore, EW at smaller time frame is very difficult to be seen by our naked eyes. So someone would say there is no EW. This is incorrect. Usually the support and resistance line is also the EW support and resistance, that is why price is always bound back from important price level.
Dear Bear-bull
Thanks for your reply have you made any profits with EW,Do you use EW in your analysis,How do you count the EW using S and R
  • #6
  • May 23, 2013 9:46am May 23, 2013 9:46am
Quoting Eagleprice
{quote}Dear Bear-bullThanks for your reply have you made any profits with EW,Do you use EW in your analysis,How do you count the EW using S and R
I used to trade based on EW to determine the direction of the price. However, I have stop trading for a few month, because of my main job is not allowed, i always miss the good opportunity trade. So i prefer EA to trade for me. But, it is impossible to code EW into EA as this is a complex system. But i have another method myself.

If you want to know LIVE EW forecast of S&P500, EUR, YEN, Gold and etc. You may refer to this thread
http://www.forexfactory.com/showthread.php?t=402968

If you want to learn something about EW, this is the good one, better than the other website explaination
http://stocata.org/ta_en/elliott7.html

If you want to understand the investigation of EW (Statistical Analysis), here is it.
http://blog.forex4you.com/the-most-p...able-of-waves/
http://blog.forex4you.com/an-investi...ve-oscillator/

Add: I am not very pro to spot EW in smaller time frame. And Renko chart is a good chart to spot wave.
  • #7
  • May 23, 2013 10:03am May 23, 2013 10:03am
Quoting Xela
{quote} So you're starting off the discussion about it by calling anyone who has an opinion different from yours an innumerate idiot, before they even post? That's going to make for an enjoyable and productive exchange of views, isn't it? On second thoughts, I think I'll just leave you to it ...
EW. Yes it works... and also it does not work.
The effect is nil, with EW or not the anlysis makes no difference.
The main issue, I think is too many rules that give it a "scientific" flavor when actually it has none. And you can always find a rule - on hind sight - to eplain this zig or that zag.
Also, why a sequence of 5 waves? you can find as many valid sequences in a market move with 3, 5, 17 waves.. or as many or as few as you want.
  • #8
  • May 23, 2013 10:18am May 23, 2013 10:18am
Quoting Mingary
{quote} EW. Yes it works... and also it does not work.The effect is nil, with EW or not the anlysis makes no difference.The main issue, I think is too many rules that give it a "scientific" flavor when actually it has none. And you can always find a rule - on hind sight - to eplain this zig or that zag.Also, why a sequence of 5 waves? you can find as many valid sequences in a market move with 3, 5, 17 waves.. or as many or as few as you want.
I disagree with your last sentence. EW is just a structure for trader to refer. It can be big wave or small wave for a complete cycle. OK, you are not wrong to say it consist 17 waves IF you are not based on EW theory, but to based on what you have seen from the chart.

Initially i am not believe that why EW must have 5 or 3 waves, but it is true because it is just EW theory. A big wave consist of 5 or 3 minor wave, and possibly consist more small EW inside.
  • #9
  • May 23, 2013 10:39am May 23, 2013 10:39am
Quoting Mingary
{quote} EW. Yes it works... and also it does not work.The effect is nil, with EW or not the anlysis makes no difference.The main issue, I think is too many rules that give it a "scientific" flavor when actually it has none. And you can always find a rule - on hind sight - to eplain this zig or that zag.Also, why a sequence of 5 waves? you can find as many valid sequences in a market move with 3, 5, 17 waves.. or as many or as few as you want.
All i have to say is " Ignorance is Bliss".
STING
  • #10
  • May 23, 2013 11:04am May 23, 2013 11:04am
Quoting stringfx
{quote} All i have to say is " Ignorance is Bliss".
I know.. in this case it's probably true. The body of knowledge that is the Elliot Wave is all subjective and given an aura of scientific precision which is totally misleading for those seeking to make sense of a price move.
  • #11
  • May 23, 2013 11:14am May 23, 2013 11:14am
EaglePrice

The question is whether it will work for you. I know one trader that has used it for 20 yrs & it is working for him
according to his account statement, but I could never get the hang of it, so I threw in the towels so to speak
& found something that works for me. Good trades to all.
  • #12
  • May 23, 2013 12:21pm May 23, 2013 12:21pm
Quoting Mingary
{quote} I know.. in this case it's probably true. The body of knowledge that is the Elliot Wave is all subjective and given an aura of scientific precision which is totally misleading for those seeking to make sense of a price move.
Dear Trader, If possible, try to get a copy of a book called " Five waves to Financial Freedom" by Ramki Ramakrishnan. It's available online for about $10. It's not a big book, 100 odd pages. The author explains what is required to be known by a trader for trading using EW combined with Fibonacci expansion and retracement. Once you have read that book for about 3 times, you would know that you have that extra edge with these markets. I would suggest reading it many many times becoz you learn something new everytime.

Once you know a bit about EW, do some demo trading using daily charts only. Do not use it on smaller timeframes as you might fail to see the big picture.

If you have the patience to practice drawing fibs and locating end points of each waves and applying your knowledge to your trading, there is no better method to trade this vicious market as it gives you precision targets especially if you are trading daily charts but if you are day trader and wants to make a few dollars everyday, you should stick with your indicators and scalps.
PM me if you need help.
Regards
STING
  • #13
  • May 23, 2013 6:46pm May 23, 2013 6:46pm
My honest answer is that I don't know.
I tried to learn EW theory some years back
I found it relatively simple to identify waves in hindsight, but in real time, I had to keep re-evaluating the waves and so found it useless as a prediction tool. Because it is so complicated, I don't know if I failed or EW theory failed.
I couldn't get to grips with it, but I know of others that find it extremely useful, so probably my failure
Please Do Not PM Me With Coding Enquiries
  • #14
  • May 23, 2013 7:49pm May 23, 2013 7:49pm
It all works and none of it works, just depends on the trader using it.
  • #15
  • May 23, 2013 9:05pm May 23, 2013 9:05pm
Problem with it is people only learn fib price and wave counts. There are a few golden nuggets out there that teach you the missing part. TIME
when retracements and extensions fail its often because the TIME for the move is up then you can sit there clueless wondeing
if your count is messed up
  • #16
  • May 23, 2013 11:04pm May 23, 2013 11:04pm
Quoting Eagleprice
Nothing new about this subject, We all know about elliot waves, The theory is very simple but in reality elliot waves are more complex and takes years to master ,I am not a elliottician , I see lot of people swear by it meanwhile in the same time most of the traders give negative opinions about elliot waves, Some say that elliot waves don't even exist ,So is there anyone who uses elliot waves in their analysis, Is elliot waves working for you? Please share your opinions and ideas Eagleprice
it has the usage of fortune cookies. it doesn't work by a longshot.
  • #17
  • May 23, 2013 11:45pm May 23, 2013 11:45pm
In my opinion, it works and does so very well. it is important to note that with elliott waves, you are also using other methods as well (trend lines, and fibs). Though who do not say it works is because all they are trying to do is count by itself.
  • #18
  • May 24, 2013 12:13am May 24, 2013 12:13am
Is there anyone who used elliott wave for a long time? Lot of confusions around this concept.Please let me know whether elliot waves exist or not ? Is it possible to predict the waves?
  • #19
  • May 24, 2013 3:41am May 24, 2013 3:41am
Quoting acetrader
EaglePrice The question is whether it will work for you. I know one trader that has used it for 20 yrs & it is working for him according to his account statement, but I could never get the hang of it, so I threw in the towels so to speak& found something that works for me. Good trades to all.
Dear Ace
Thanks for your reply
The discussion and thread is not about my own opinion or whether elliot wave suits me or not,It is about overall view of the traders who believe and who don't believe in EW,Some people say EW is bible of technical analysis,This thread is to find out the truth and myths in EW whether EW exist or don't

Regards
EAGLEPRICE
  • #20
  • May 24, 2013 3:47am May 24, 2013 3:47am
You are most welcome. Best of luck with your research into Elliott Wave & its usefullness.
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