Elliott wave for beginners

Hello,

I will just cut to the chase.
Can somebody please give a good material books/videos/blogs how to trade with elliot wave theory.

Yes, i know Web is full of it, but good material with great teaching method is hard to find!

Please keep this post clean!

Thank

Greeny in trading world

I love Elliott Waves. I know a lot about them, but trading using EW is very difficult.
My favourite is Bill Williams.
elliottwaveinternational.com's Jim Martens and Jeffrey Kennedy are excellent.
Sid Norris from elliottwavepredictions.com is good too. I found his introductory video lessons very helpful.

But mostly I trade EW 3 ways.

1. Using the 50 SMA, any rejection at that moving average is the start of the Wave 3 in any time frame.
So on a 1 or 5 minute time frame, if the price crosses below the 50 SMA and then attempts to retouch, but is strongly rejected, that will signal the start of the 3rd wave of the larger down move already in progress. The entire move on that smaller time frame will be the first 5 waves of the larger Wave 1.

This is my proprietary secret that I have used to trade for over a year.

I have 2 more amazing techniques that are not my own creation, but Bill Williams and Jeffrey Kennedy's, both of whom I have spent thousands of hours studying and investing in.
You need to discover these on your own if you are serious about EW trading.
No pain no gain.

Thanks, i know that EW is hard but,i do not look for easy money.
ATM i am drawing waves from monthly to 1h chart - and it tooks about a day to draw one currency pair and still i´m not sure that i am right ..

But thanks for the quick feed back!

There are many complex corrective wave types. They will not help you trade, except in the current price action.

For example, wave 2 is usually a simple zig-zag, so you would trade the break of that trend line. Often there is divergence accompanying that ABC correction on the MACD.

Wave 4's are usually a complex triangle or flat. Quoting Bill Williams, if you don't know what wave you're on it's most likely a wave 4.

Wave 4's are impossible to detect early. You have to wait until the pattern has completed and then wait for the break of the trend line.

Good luck trying to count waves from historical data. Sid Norris is amazing at that. I don't do it for my trading. I'm a short term trader so I only use what I need for the current price action.

Most people trade wave 5 because wave 3 is easy to detect. Wave 4 must go back to the zero line on MACD or AO before being rejected and wave 5 is always accompanied by divergence on MACD.

There! those were the other two trade secrets. Now you know how I trade. I guess I'm an open book.

Hello tsoo,

I would recommend a couple of books to you that are worth your time:

1. Applying Elliott Wave Theory Profitably by Steven W. Poser
2. Elliott Wave Principle: Key to Market Behavior by A.J.Frost
3. Mastering Elliott Wave by Glenn Neely

Probably they are quite expensive for someone new to this, but if you have the money to spend, they will get you started on your journey to "Elliot Trading Land". But you will have to read and research a lot more than those 3 books above in order to fully understand Elliot principles.

Good luck reading and great profits to you this year!

I am very happy to have found that new trading discussion about the Elliott Waves.... After one year of Forex trading on demo and doing Forex Contest I begin to use the Elliott Wave Principle and my trading accurate by 100% at the first week. What happen? I receive by E-mail a free week alert on all currency pairs and at the same time i begin 2 contests and win over 120$ in money and bonus.

Before i was using many different indicators and i was doing good because i am that kind of guy: when i see money i take it and run... Never looking behind...But i was not satisfy of my trading because i have to stick my nose on the PC and no real good method. I blow out many demo account because i was trading both side of the trend and get catch on the wrong way and hope the reverse trend will come back and loose everything.

From that web site i could download many things about Elliott wave and the correlation with the Fibonacci Sequence. I have a bunch of paper that i read 2,3 times and i think i will stick on it and never change this method that i believe in it.

With that new Forum i can grow up with the indicator of Sclipp... Thank you very much for that and if i can do something in return feel free to ask. I am like you ``an open book`` because i think what is good for me can be good for some one else.

One useful tool in EW is if you use MT4 platform, I believe it comes with an indicator called 'Zig-Zag'. This is really useful to essentially count the lows/highs and deducing what wave the instrument might be in.

I personally dont trade just on EW's but part of my technical analysis is to use them to work out when the nice wave 3 begins. Bottom line is find the most recent low or highest high points and start counting from there.

if you go on H1 TF and put in the Bill Williams Alligator, you can see the waves clearly. Then add Fractals. It's beautiful. As the price consolidates, waves 2 and 4, it gets intertwined with the alligator. When the trend resumes the UP fractals get broken. It's all in his book Trading Chaos. There are many threads about Bill Williams Alligator, and his Fractal trades.

there are waves in every TF. The 1 minute waves will make up the 5 waves in Wave 1 in H1, etc.

I have no idea which wave we're on looking at the big picture. it doesn't matter which super cycle were on. When there's an impulse move, there will always be 5 waves. The psychology is explained by Prechter

Hi tsoo,
After trying many others [including subscriptions],
I have settled with Harmonic Elliott Wave [Ian Copsey].
I also subscribe to HEW to keep myself on track,
and learn as much as I can to improve my own counts.
[Is it easy going? No! Does it work? Yes!]
Cheers, U2

Hi sclipp,
Thank you for sharing your secrets.
I'll add them to my strategy!
With HEW, Wave iii's can be measured as a projection of wave ii
[Minimum 176.4%].
Therefore Wave iv's are detected and have expected HEW Fib. retracement levels.
Also, Wave v's can be measured as a projection of wave iii [eg 61.8% to 85.4%].

Cheers, U2

Hi ! All

Thank you for your very good post about Elliott Wave.
By the way, I have a question. If I would like to apply Elliot Wave Principle to follow trend on Wave 3... Could you please kindly recommend method to find break out ?

Thank you.