How Elliott Wave can Improve Your Trading Performance
In this article, we provide some guide to improve trading performance with Elliott Wave Analysis and Elliott Wave Counting. Elliott Wave is sophisticated. This sophistication makes it difficult to judge the trading performance of Elliott Wave in practice. Purely looking at the trading performance, Elliott Wave can introduce some subjectivity. It is true. However, many trader might agree that Elliott Wave can become a powerful tool when we can reduce or get rid of the subjectivity. The fact is that there are many seasoned traders using Elliott Wave successfully in practice. Some of them are high profile traders at the fund management level.
We have already suggested the way to reduce the subjectivity with Elliott Wave counting through the book and some other articles using the “template and pattern approach”.
Scientific Guide to Price Action and Pattern Trading (Wisdom of Trend, Cycle, and Fractal Wave)
Introduction on the Elliott Wave Trend with Wave Structural Score
The essence in the “Template and Pattern Approach” to count Elliott Wave is:
Building up wave counting using template (or patterns) first
Use the Wave score to get the scientific justification or when the wave score is not available, then you can check the correct location of each wave point to judge the valid trading point
These are the two main things about the “Template and Pattern Approach”. This is the only way to deal with the complex nature of Elliott Wave Trading. Now, in our Elliott Wave Trend, it shows all the available template (or pattern) to trader. This is good thing because you will not miss out any single possibility for your wave counting. At the same time, Elliott Wave Trend shows you both impulse wave structural score and corrective wave structural score.
Now here is important information for your trading. Elliott Wave can provide you trading entry at several different locations. These are not limited list but you can consider it at least. Some trader might prefer one entry over the other. You might create your own entry outside this list.
Entry Option 1) Impulse Wave .123 (= two triangles)
Entry Option 2) Impulse Wave .1234 (= three triangles)
Entry Option 3) Impulse Wave .12345 (= four triangles)
Entry Option 4) Corrective Wave .ABC (= two triangles)
Entry Option 5) Elliott Wave version of Triangle for breakout
You need to set the right template in the Elliott Wave Trend. Note that 1 Equilibrium Fractal Wave = 1 triangle. So if you wish to play with entry option 2, impulse wave .1234, then you will need to set for EFW number = 3. Then Elliott Wave Trend will bring the right template for impulse Wave .1234 (= three triangles).
You can read full article here. This article explains everything about to improve trading performance with Elliott Wave Analysis and Elliott Wave counting.
Elliott Wave Trend is a Elliott Wave indicator desinged to help Elliott Wave counting and Elliott Wave pattern detection. With Elliott Wave Trend, you have some additional tools to reduce the subjectivity with your wave counting and pattern detection. For example, Elliott Wave Trend provides the wave score and some template to start your wave counting. You can check the Elliott Wave Trend from the link below.
Image and article originally from www.mql5.com. Read the original article here.