TradingLoungeElliott Wave Trading Tips
If you have started to learn Elliott Wave, then good for you, it’s truly fascinating.
Effort Equal Reward
Consider it a learning journey over a long period of time, your efforts will equal the rewards.
It doesn’t take long to understand the actual Elliott Wave Principle, but applying it correctly does, it’s an art. Requiring you to think beyond one pattern and consider all other possible patterns.
Confirming before moving
Gathering evidence to confirm the fractal structures, before moving forwards.
Our human faults will make it hard to see what is, such as thinking the top is in place when the market continues to move higher and suddenly you realize you have missed a huge bull run, so don’t get fixed into a structure without confirming the evidence, be a scientist about it and gather the evidence.
This is a subtle point but it’s worth a mention.
When you buy a consumer product, you look at it and buy it, it’s what you get.
But you can’t take this buying habit into the trading world, as you always get the opposite of what your buying. If you see a trend and you buy it, then the next move will be a correction and you will get caught. I buy or sell after a correction, as I understand trends are engineered from corrections, so corrective patterns are the starting point for my trade set patterns.
Other tools such as indicators can be helpful.
Such as the Stochastics to help find top and bottoms to help confirm patterns, but you need to understand its strengths and weakness, start by understand the calculation.
Pump Up the Volume
Volume analysis to help confirm all structures, learning how to read volume correctly is hard to find, but it is important, as the volume creates the price so understanding the pulse of volume, the amounts moving in and out of the market which creates the price and drives the price
As they say, ‘it’s all in the price’
But that’s hard to understand when your starting out, what doe5/10/2017