A (new?) personal strategy for using elliot waves NZD short
DISCLAIMER: This strategy has been developed solely by myself, any resemblance to what ever system out there will be a mere coincidence. Guys I am sharing this strategy with you (developed last night after recognizing the repetitive patterns on the stochs) and don't want any thing in return expect recognition. IF it proves to be useful in the future please do drop my name (spent a sleepless night working on it after all). I'd rather give something of value to others than act all greedy and super secretive about something which may actually work. We don't get to take the money to our graves. Please don't trade for money. If you do, you won't get this one anyway. :P Cheers Hamza
So let's get to business:
The strategy is amazingly simple. It utilizes the K line of (standard settings) Stochastics indicator. What you basically do is to try and recognize impulses/versus corrections using the K line movements. You should have at least a basic knowledge of Elliot Wave Theory in order to use it effectively. You have to "analyse" a whole set of data of stochastics in order to be able to make predictions about the future. Bear in mind that I have developed this specific strategy for the weekly chart. It may not be effective on other time intervals. I did my best to clarify my logic into dividing the waves by using different colours for the trend lines which I have drawn (on the indicator's window):
Green trend line (within the red rectangle) indicates the start of an upwards impulse (be it a major or minor one)
Red trend line (within the red rectangle) indicates the start of a downwards impulse ( be it a major or minor one)
The green rectangle has multiple "tops" of the stochs and is a strong indicator for upwards impulsive waves
The red rectangle has multiple "bottoms" of the stochs and is a strong indicator for downwards impulsive waves
The black trend line is used to indicate a period of correction (be it to the upside or the downside)
The purple trend line is used to indicate fluctuations of stochs WITHIN impulsive moves
Counting Elliot waves can be quiet difficult, especially for starting traders (myself included). Hopefully this will help. it goes without saying that you need other analytical analysis tools in order to make a comprehensive study and (accurate) predictions (please manage your risks). If you have any questions, please don't hesitate to ask me.
Now back to NZDUSD, according to my EW count, this pair still has a lot of room to the downside. Rationale behind the setup is shown on the chart along with specific target and stop loss. If get your counts right you can get a much better risk/reward ratio than the conservative one which I have chosen. Best of luck.
So let's get to business:
The strategy is amazingly simple. It utilizes the K line of (standard settings) Stochastics indicator. What you basically do is to try and recognize impulses/versus corrections using the K line movements. You should have at least a basic knowledge of Elliot Wave Theory in order to use it effectively. You have to "analyse" a whole set of data of stochastics in order to be able to make predictions about the future. Bear in mind that I have developed this specific strategy for the weekly chart. It may not be effective on other time intervals. I did my best to clarify my logic into dividing the waves by using different colours for the trend lines which I have drawn (on the indicator's window):
Green trend line (within the red rectangle) indicates the start of an upwards impulse (be it a major or minor one)
Red trend line (within the red rectangle) indicates the start of a downwards impulse ( be it a major or minor one)
The green rectangle has multiple "tops" of the stochs and is a strong indicator for upwards impulsive waves
The red rectangle has multiple "bottoms" of the stochs and is a strong indicator for downwards impulsive waves
The black trend line is used to indicate a period of correction (be it to the upside or the downside)
The purple trend line is used to indicate fluctuations of stochs WITHIN impulsive moves
Counting Elliot waves can be quiet difficult, especially for starting traders (myself included). Hopefully this will help. it goes without saying that you need other analytical analysis tools in order to make a comprehensive study and (accurate) predictions (please manage your risks). If you have any questions, please don't hesitate to ask me.
Now back to NZDUSD, according to my EW count, this pair still has a lot of room to the downside. Rationale behind the setup is shown on the chart along with specific target and stop loss. If get your counts right you can get a much better risk/reward ratio than the conservative one which I have chosen. Best of luck.
