Waves states that corrective waves are always contrary to true market direction.
BUY SIGNAL (Blue Bottom Donchiain Channels - 1st Chart)
Price is "oversold via candles having bottomed and stepped-down 3-steps / Waves
Place your limit order to buy at your exchange based upon the 3rd Step / Wave average numerical value of the steps
CONFIRM ( - 2nd Chart)
Green rise above Red
SELL SIGNAL ( - 2nd Chart)
Green cross below Red
function in a reaction to an action
If Price Tops Stepping-Up Top Blue Channel = Price Is OVERBROUGHT = Impending PRICE DROP
If Price Drops Stepping-Down Bottom Blue Channel = Price Is OVERSOLD = Impending PRICE RISE
REFERENCE ( - 3rd Bottom Chart) :
For reference only, no buy or sell signal is actually taken from it, all it does is reflect the current Market Trend:
GREEN @ 100% = Upward Trend
RED @ 100% = Downward Trend
GREEN and RED Both below 50% = Sideways Consolidation Trend Beginning
GREEN and RED Both 0% = Sideways Consolidation Trend
Shown For Use With a 30-Minute TimeFrame
A Trade may take 4 to 5 Hours
Make Sure To set your Stop Loss
Before Entering Your Trade To Minimize
Any Loss Should The Market Go Against Your Trade.
A Stop Loss of 5 points below your Entry should be fine
Short Version (Crash Course - 4 Hour Read): http://www.elliottwave.net/educational/basictenets.htm
Short Long Version - http://elliottwave.com/tutorial/
Long Version (By The FirePlace Read) - http://issuu.com/elliottwave/docs/ewp2008-no-cover-unsecure
Prechter graduated from Yale University in 1971 with a degree in psychology. He served as the 21st president of the Market Technicians Association, and is a member of the Shakespeare Oxford Society and the Triple Nine Society. For more information, visit http://www.robertprechter.com.
Prechter won the U.S. Trading Championship in 1984 with a then-record 444% return in four months in a monitored, real-money options trading account. His publication, The Theorist, won numerous speaking, timing and publishing awards during the 1980s, and in 1989, he was named “Guru of the Decade” by the Financial News Network (now CNBC). In 1999, Prechter received the Canadian Society of Technical Analysts’ inaugural A.J. Frost Memorial Award for Outstanding Contribution to the Development of . In 2003 , Traders Library granted him its Hall of Fame award.
Happy Surfing / Trading,
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