You can swing trade even without Elliott Waves using commonly known algo targets.
Trading algos don't care about Elliott Waves, they can only detect swings and use common fib relationships for entry/exit points.
Usually algos are written to defend 50% and 61.8-65% retracements of the prev swing and then use -23.6% and -61.8% as their conservative targets for taking profit.
For more information watch a few Sam's videos: www.youtube.com/watch?v=ayAStVZs...
Notes on the Chart:
You can see confluence zones of algo targets at 5400, 5000, 3400, and 3000 (Bear targets). 7600, 7950, 24000 (Bull targets).
This means that algos exist waiting for those targets. You can use this information in your trading.
1) algo entry targets (open long/short):
38.2% - 1st algo target (high probability end of wave 4, triangle)
50% - 2nd algo target (end of wave 2)
61.8-65% - 3rd algo target (also end of wave 2)
Algos buy (or sell) starting from 50% through 61.8% and sometimes up to 65% - 2nd algo target. If the price retraces further than 65% algos are stopped out or flip position.
Some algos start early at 38.2% through 50%.
2) algo exit targets (take profit):
-23.6% - 1st algo target (negative 23.6 on a standard fibo pulled from start to end of wave 1 => 100 + 23.6 = 123.6% of wave 1 from point 0)
-61.8% - 2nd algo target (negative 61.8)
-100% - 3rd extreme algo target (negative 100)
-161.8% - 4th and last extreme algo target (negative 161.8)
Algos usually exit more conservatively before wave 3/5 reaches 100% of wave 1, for example:
algo wave 3/5 targets for -23.6 would be:
for 61.8% retracement: 61.8 + 23.6 = 85.4% < 100% of wave 1, a commonly used target.
for 50% retracement: 50 + 23.6 = 73.6% < 100% of wave 1, a commonly used target.
for 38.2 retracement: 38.2 + 23.6 = 61.8 < 100% of wave 1, a commonly used target
Conclusions:
- All these targets depend heavily on selected pivots and may not always work. The pivots usually work best if pulled from the end of wave 2 to wave 3 or from wave 3 to wave 4. In a wedge look for relationships between 1 and 3 waves.
- There's no guarantee that the price will hit the algo target, especially -61.8 and further.
Comment by Acel:
algo targets work, but its hard to find the dominant pivot points, its not always the top of the 5th wave and the bottom of the A-wave. I have played around with them a lot and have some interesting results on how accurate they are. For example, you can place the top at the end of the 3rd and the low at the bottom of the 4th, reverse it and -0.236 finds the 5th, uncheck the "reverse" and -0.618 or -1 finds a major pivot for a bounce, either A/1 or 3/C.
Trading algos don't care about Elliott Waves, they can only detect swings and use common fib relationships for entry/exit points.
Usually algos are written to defend 50% and 61.8-65% retracements of the prev swing and then use -23.6% and -61.8% as their conservative targets for taking profit.
For more information watch a few Sam's videos: www.youtube.com/watch?v=ayAStVZs...
Notes on the Chart:
You can see confluence zones of algo targets at 5400, 5000, 3400, and 3000 (Bear targets). 7600, 7950, 24000 (Bull targets).
This means that algos exist waiting for those targets. You can use this information in your trading.
1) algo entry targets (open long/short):
38.2% - 1st algo target (high probability end of wave 4, triangle)
50% - 2nd algo target (end of wave 2)
61.8-65% - 3rd algo target (also end of wave 2)
Algos buy (or sell) starting from 50% through 61.8% and sometimes up to 65% - 2nd algo target. If the price retraces further than 65% algos are stopped out or flip position.
Some algos start early at 38.2% through 50%.
2) algo exit targets (take profit):
-23.6% - 1st algo target (negative 23.6 on a standard fibo pulled from start to end of wave 1 => 100 + 23.6 = 123.6% of wave 1 from point 0)
-61.8% - 2nd algo target (negative 61.8)
-100% - 3rd extreme algo target (negative 100)
-161.8% - 4th and last extreme algo target (negative 161.8)
Algos usually exit more conservatively before wave 3/5 reaches 100% of wave 1, for example:
algo wave 3/5 targets for -23.6 would be:
for 61.8% retracement: 61.8 + 23.6 = 85.4% < 100% of wave 1, a commonly used target.
for 50% retracement: 50 + 23.6 = 73.6% < 100% of wave 1, a commonly used target.
for 38.2 retracement: 38.2 + 23.6 = 61.8 < 100% of wave 1, a commonly used target
Conclusions:
- All these targets depend heavily on selected pivots and may not always work. The pivots usually work best if pulled from the end of wave 2 to wave 3 or from wave 3 to wave 4. In a wedge look for relationships between 1 and 3 waves.
- There's no guarantee that the price will hit the algo target, especially -61.8 and further.
Comment by Acel:
algo targets work, but its hard to find the dominant pivot points, its not always the top of the 5th wave and the bottom of the A-wave. I have played around with them a lot and have some interesting results on how accurate they are. For example, you can place the top at the end of the 3rd and the low at the bottom of the 4th, reverse it and -0.236 finds the 5th, uncheck the "reverse" and -0.618 or -1 finds a major pivot for a bounce, either A/1 or 3/C.
Here's a list of all possible fib setups/targets from the Elliott perspective.
fibs between:
(wave 0 = start of wave 1)
- wave 0 and wave 1 => wave 2 to ride wave 3
- wave 0 and wave 3 => wave 4 to ride wave 5 or in wedges with overlapping waves
- wave 0 and wave 5 => wave 2/4 abc to ride next sibling wave
- wave 2 and wave 1 => usually doesn't work, there's nothing to retrace (perhaps a smaller degree wave ii to ride wave iii in wave 3)
- wave 2 and wave 3 => wave 4 to ride wave 5 BEST! (doesn't work in wedges with overlapping waves)
- wave 2 and wave 5 => ride from wave 2/4 abc to next sibling wave
- wave 4 and wave 3 => usually doesn't work, there's nothing to retrace (perhaps wave ii to ride wave iii of a smaller degree in wave 5)
- wave 4 and wave 5 => ride next sibling wave iii (usually doesn't work wave 2/4 abc retraces 90% to smaller degree wave iv territory)
- wave 5 and wave a => wave b to ride wave c
- wave 5 and wave c => X abc to possibly ride the next sibling wave
- wave b and wave a => doesn't work nothing to retrace
- wave b and wave c => X abc to possibly ride the next sibling wave