Client Login

Elliott Wave 4 observation

I'm using MTP 7.5 now for 5 months with very good results. I have to admit that it was at the beginning hard for me - as an Elliott practitioner - to realize the benefit of the isolated EW approach. The EW principle is logical and looks simple and clear (only) in the retrospective view, however, the confusion comes when you have to make decisions now with the consequences of loosing money. I think the assumption of a 50% "unclear and foggy" situation is not too far away from the truth. In this dilemma, your EW approach gives very clear and reliable guidelines. The longer I work with MTP 7.5 the more can I benefit from it

A.E. Private Trader

Elliott Wave 4 observation

Elliott Wave (4) can retrace into the area of Wave (1) (slightly)

Rule number 3 states that Wave (4) cannot retrace into the area of Wave (1). However, in practice, particularly in the commodity markets, a small retracement into the area of Wave (1) often happens.

Here Wave (4) has retraced back just below the high of Wave (1), which normally would invalidate this as a potential 5-wave count. However, in practice you can allow Wave (4) to dip into the area of wave (1) slightly.

Actually, if the market in question immediately reverses and then moves out of the area of Wave (1), then this should be allowed as a valid 5 wave count. As you will see  later, although this minor breach of the Wave (1) extreme can be allowed it should not normally happen in a perfect 5-wave count.

As such, when this happens you should treat the wave count as valid but not perfect.

End....

 

 

To Top