False Signals can be avoided by never making a entry on the
shorter time-frames when the yellow 8/20 MA line is sloping downward,
On longer time-frames if making a entry when the 8/20 is sloping downward
be sure to set your stop-loss a little larger than normal.
Also can be used with any other TimeFrame from
To a 1-Minute for Scalping
WAIT FOR A SIGNIFICANT DROP FIRST OF 10-POINTS OR MORE
BUY SIGNAL = GREEN RISES & CROSSES YELLOW - On The First Chart - (8/20 MA - 1st Chart)
CONFIRM = PURPLE ACCUMULATION / DISTRIBUTION LINE IS ABOVE PRICE - Preferably risen from below at 45 Degree Angle or more sharper from below Price Candles - (1st Chart)
CONFIRM = WAIT FOR LIGHT BLUE AND RED LINE TO DROP BELOW THE GREY CLOUD - This shows that you are at a entry point . ( )
CONFIRM = GREEN RISES & CROSSES YELLOW - On The Second Chart ( )
SELL SIGNAL= Zoom Out to 30-Min TimeFrame, when GREEN FALLS BELOW YELLOW - (8/20 MA - 1st Chart)
Shown For Use With a 1-Minute TimeFrame./
A Trade may take 12 to 24 Hours.
When Using the 45-Min, 1-Hour, or 2-Hour TimeFrame.
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 3 to 5 points below your Entry should be fine
When using on the longer TimeFrames.
For ElliotTechnicians the Light Blue Line actually draws the Flat Waves for you automatically, great way of knowing what comes next,
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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