MTPredictor Software - Definitions of Terms
This page contains definitions of the terms used on this website
Isolation Approach™ to Elliott Wave
Our unique Isolation Approach™ looks at the main Elliott Wave patterns in isolation.
The isolation approach to Elliott Wave was Invented by Steve Griffiths and has been used by Steve in his own Analysis for many years. It has been a fundamental part of MTPredictor since its launch in September 2001.
This means the analysis does not rely on any previous patterns to determine any current wave structure.
Wave labels - not changing mid-trade
This means that when you are in a trade, the wave count will not change unless you are stopped out. If this happens, the software will re-evaluate any new data and reassess the wave structure. This can mean that as new data arrives there is a new wave structure present. For example, the Trading Course covers how a Wave C can turn into a Wave 3 as the Typical Wave C Wave Price Target (WPT) is exceeded.
This means that if you are stopped out, it will be a small, controlled 1R loss (-1R). This is where Position Sizing is vital. Losses can and do happen - this is part of trading. But if you return to the trade that was stopped out, the wave count will be the same at that point as when you entered the trade. This is what we mean by wave labels not changing mid-trade - as long as you are in the current trade (not stopped out), the pattern will stay the same as at the point of entry.
MTPredictor automatically finds only one Elliott wave pattern at any time. We do not deal in alternate wave counts, x waves and other irregularities which we believe cause confusion.
Also, we deal only with the most common and most reliable wave counts. We do not deal with complex corrections, because we believe (as the name suggests) they are complex, unreliable and should be avoided.
We suggest you manage the trade on the same timeframe as the trade was entered. This avoids confusion with multiple timeframes. However, we do suggest that you always check the higher degree time frame to make sure that any trades you consider are in the direction of the larger-degree trend.
Multiple timeframe analysis is taught as part of our Advanced techniques.