Waves states that 3-Wave corrective waves are always contrary to true market direction.
BUY SIGNAL ( - 2nd Chart)
Green rise above Red on the bottom level (OverSold) of the chart
CONFIRM: ( - 3rd Chart)
Green is curving upward on the bear side, or beginning to curve.
CONFIRM: (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
SELL SIGNAL ( - 2nd Chart)
Green cross below Red in the upper top part (OverBrought) area of the chart
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 / CONFIRM ON 1-MIN TIMEFRAME ( - 4th Chart - Yellow Line) :
Make sure the Yellow line touches or has risen above the dashed blue line if trading on the 1-Min Chart, otherwise Reflect the current True Market Trend:
When divergence from price is noticed on the , this indicator can be used to verify True Market Trend Direction, can be cross referenced and verified via comparing to the (4th Chart) indicator, if both agree, then the market is in divergence to the .
REFERENCE ( - 4th Bottom Chart) :
Reflect the current True Market Trend:
When divergence from price is noticed on the , this indicator can be used to verify True Market Trend Direction, can be cross referenced and verified via comparing to the indicator (Yellow Line-3rd Chart) , if both agree, then the market is in divergence to the .
GREEN @ 100% = Upward Bull Trend
RED @ 100% = Downward Bear Trend
GREEN and RED Both below 50% = Sideways Consolidation Trend Beginning
GREEN and RED Both 0% = Sideways Consolidation Trend
Shown For Use With a 4-Hour TimeFrame
A Trade may take 24 to 30 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
This chart's default is for a 4-Hour TimeFrame, but can also be used on the 1-Minute TimeFrame for Interday Trading with trades taking only 2 to 3 Mintues.same rules apply.
Short Version (Crash Course - 4 Hour Read): http://www.elliottwave.net/educational/b...
Short Long Version - http://elliottwave.com/tutorial/
Long Version (By The FirePlace Read) - http://issuu.com/elliottwave/docs/ewp200...
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.