If you do the ABCD lines, you will note that AB=CD here. where AB is 1,2 and CD is 5,A. Moving on from there, its a new impulse wave.
Ruckusman
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@ssari, Hi! Thank you for your comment. Just trying to figure out what exactly have you ment ;)
I am currently clicking like mad men through thepatternsite (dot) com where there is a lot of theory explanied ;)
I see that wave counting is related fo fibbonaci ... I hope that I will understand one day ;)
BR R.
ssari
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@Ruckusman, So this bullish AB=CD Pattern, confirms that E is next. Where E is, is what everyone is trying to work out.
The Elliot wave trading is very difficult. You have to be an expert and most people who publish the Elliot wave get it wrong.
@ssari, My suggestion to you is, practice to identify the elliot wave but don't trade with it. I would rather trade with other indicators like EMA\SMA, support and resistance lines, RSI or MACD to identify divergences, volume, and patterns. You will have better success. On that journey, keep Elliot waves in mind until you think you mastered it. Harmonic patterns and elliot waves I use to support my theory with the fore mentioned tools.
Ruckusman
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@ssari, Hi! Thank you for suggestion! Actually I have stopped to trade until I get the whole picture. I did some fomo and I don't wan't to repeat it. So I am reading whatever I can get under my fingers ;)
Currently I am trying to use indicators like RSI, MFI, MA, open interest (supply and demand) and the newest member in family F&G (fear and greed, today 61!)
It looks like I will have to invest in one big fat paper book with at least 1000 pages for start ;)
Br R.
ssari
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@Ruckusman, that's mature..learn the basics before going in. May be do paper trading ... available here on tradeviewing...highly recommend it.
In regards to a good book..I'm meaning to get this one > Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude by Mark Douglas. Got this referral a few times by experienced traders.
I'll give you some direction ...Youtube "WORKIN" he is great and explains things as to what to look out for. He is a great mentor...I follow him.
My advice:
Learn about the 10, 20 moving averages or exponential moving averages.
Learn about divergences, bearish and bullish divergences...these will keep you out of trouble usually 40% of time and in some many cases, a good trade.
Divergences can be identified by moment indicators like RSI and MFI...
If you can learn RSI in conjuction with patterns and divergences (put them together) + MA and how to identify support and resistances, you will cover most of the area required.
Also learn about candle sticks, especially when they in a combination.
All these elements paint you a picture, over time, you will get experience ... they say 10,000 hrs required to be compitent. I have been at it a year and getting better at it as I am making a living now on it.