How to look for setups using Elliott Waves(educational)

FX:AUDJPY   Australian Dollar / Japanese Yen
972 10 26
Hello, i want to share with you my prefered areas where i look for setups using EW.
This is a simplified chart of an impulse followed by a correction. Sometimes its as simple as that, sometimes is very complex.
Since i started using EW i found very profitable setups real-time. Im showing an example for each setup below.

Our work is to find a clear wave structure, so we can enter a HIGH PROBABILITY trade (nothing is 100% sure in trading). This is the most difficult part of trading using EW but worth it.

They say EW is complex and subjective and its true. TRADING is complex and subjective, ten experienced traders can have differents opinions using technicals or using EW.

EW is not the holy grial, for me it is just a very powerful tool to find good setups and improve our performance.

Best regards.


example 1

example 2

example 3

example 4

Thanks for this post FTT. How do you define when wave 1 starts? I realise this a subjective thing, but I presume you have some sort of rule of thumb that you apply? In example #1 above, to my mind wave ii-iii should be wave 1 (the first move up). I don't know EW though, but it just seems to be the first move upwards of the market after the big down. Also, which of waves 1-5 do you most prefer to trade?
FullTimeTrader BuySellBuySell
Hello, be carefull, they say EW is complex but it does not mean it is useless for real trading (see my examples). Its a very powerfull tool and worth to study it. To verify a count i use fib ratios and a top-down approach, starting from monthly and weekly charts. After that i switch to my desired TF (D1 and H4) and try to identify a clear structure. If the structure is not too clear better to look other pairs. If i found a clear structure i could enter a high probability trade. See my idea i posted on USDZAR, for me the structure is very clear and i opened a real trade there. I trade all waves i posted above. Best regards.

BuySellBuySell FullTimeTrader
Thanks and good luck.
Thanks - I always thought EW was too subjective to be used (i.e. easy to identify the waves after they occurred and difficult to find an "objective" count) - do you think it is the case?
Nice, thanks!
Being an experienced trader, still, seeing this provides with me a dose of displaced nostalgia when I was learning these things. Thanks for sharing, and I hope other members benefit

+1 Reply
BlueSkyThinking TomProTrader
Hi Tom, I am moving full time next month although I never really used EW per se. Are you still using it / Are you finding it effective?
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