In this help Tutorial, we take a look at using the MTPredictor Advanced trade setups script to catch the Elliott Wave 3 swing.
To catch the Elliott Wave 3 swing, we need to be able to identify the end of the Wave 2 swing. In Elliott Wave Terms, the Wave 2 is the initial correction after the initial swing off an important high or low. The Wave 2 also normally sub divides into a minor 3 swing (abc) pattern.
In MTPredictor we use our isolation approach to Elliott Wave Analysis, because we believe that markets are random about 50% of the time, so we only look to use Elliott Wave when the patterns are clear. And for this we look to start our Elliott Wave sequence at higher time frame Decision Pont (DP) support or resistance. We then look for the initial move from this important high or low. After that we then look for the initial correction, to the initial move, that subdivides into a minor 3 swing, abc pattern. This is then the end of the Elliott Wave 2, and as such is a good place to look to enter a new Trade. We then look for a Wave 3 swing to unfold. As a Profit target for this swing we use our MTPredictor WPT (Wave Price Target) zones, which are Fib Clusters, of where the Wave 3 is most likely to end.
Please remember that losses can and will always unfold, that is why we suggest using Position Sizing to enter the Trade, this keeps the inevitable losses (there will be losses with any trading approach) small at just -1R. Because the Wave 3 swing is usually the strongest and longest in a completed 5 wave sequence the Profit at the Typical Wave 3 WPT zone is usually large, not in just $’s but (more importantly) in Risk/Reward units.
I hope this Tutorial has helped show our approach and what to look for to uncover the end of the Elliott Wave 2 swing, to then be able to capture the Elliott Wave 3 swing.
Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always use Stops and keep your losses small.
To catch the Elliott Wave 3 swing, we need to be able to identify the end of the Wave 2 swing. In Elliott Wave Terms, the Wave 2 is the initial correction after the initial swing off an important high or low. The Wave 2 also normally sub divides into a minor 3 swing (abc) pattern.
In MTPredictor we use our isolation approach to Elliott Wave Analysis, because we believe that markets are random about 50% of the time, so we only look to use Elliott Wave when the patterns are clear. And for this we look to start our Elliott Wave sequence at higher time frame Decision Pont (DP) support or resistance. We then look for the initial move from this important high or low. After that we then look for the initial correction, to the initial move, that subdivides into a minor 3 swing, abc pattern. This is then the end of the Elliott Wave 2, and as such is a good place to look to enter a new Trade. We then look for a Wave 3 swing to unfold. As a Profit target for this swing we use our MTPredictor WPT (Wave Price Target) zones, which are Fib Clusters, of where the Wave 3 is most likely to end.
Please remember that losses can and will always unfold, that is why we suggest using Position Sizing to enter the Trade, this keeps the inevitable losses (there will be losses with any trading approach) small at just -1R. Because the Wave 3 swing is usually the strongest and longest in a completed 5 wave sequence the Profit at the Typical Wave 3 WPT zone is usually large, not in just $’s but (more importantly) in Risk/Reward units.
I hope this Tutorial has helped show our approach and what to look for to uncover the end of the Elliott Wave 2 swing, to then be able to capture the Elliott Wave 3 swing.
Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always use Stops and keep your losses small.
MTPredictor Professional Trading Software: www.mtpredictor.com
Trading View Scripts: mtpredictor.com/tradingview
Help Videos: mtpredictor.com/tradingviewhelp/
Trading View Scripts: mtpredictor.com/tradingview
Help Videos: mtpredictor.com/tradingviewhelp/