A couple of weeks ago, I posted a chart here on USDJPY telling you to BE CAREFUL if you want to trade it because it was in a correction. And that you needed to BE PATIENT and WAIT for the correction to complete. And not only did my wave count tell me that it was in (w)(x)(y) correction but that (w)(x)(y) correction was part of the wave B of a larger ABC correction. So you shouldn't be surprised at all that it has been difficult to trade. Well, I did warn you!
Here's my post from Oct 19th on USDJPY:
Here is part of what I said: "BE PATIENT and WAIT for the wave B to finish and then look to trade the wave C down! Can you do that? BE PATIENT? Remember, NOT trading is also an action! Preserving your money is just as important as making money!"
Of course, wave counts can change according to the price action and since I posted that chart 2 weeks ago, things did in fact change. But not so much as to change the overall wave count. Prices attempted to drop down and did indeed drop below where I have the wave A ending. BUT and this is IMPORTANT...it DID NOT CLOSE below it! Which basically meant it was a fake break. Once it did that, I adjusted my wave count to reflect that attempted drop and now my wave count tells me that it is POSSIBLY in a expanded flat correction and STILL in the wave B. Is that correct? Doesn't matter. My wave count has kept me OUT OF TROUBLE.
So you can see that wave counts not only can make you LOTS of money. Used correctly, it can also PRESERVE your money which is just as important as making money. Not taking a trade is an action too! Learn to "SIT ON YOUR HANDS" if you want to be a consistently profitable trader!
I need to note that wave (Y) can't be 5-waves structure... Sorry
EverythingForex
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@Guerrera, wave y's are generally impulsive and by a strict Elliott definition (its not a rule BTW), a wave Y is composed of 3 waves Impulse-correct-impulse. That is if you are following a strict interpretation of traditional Elliott wave counting. I do not. And I never say that I am an Elliotician. I always get corrected by those strict Elliottician's but that is ok. It does not matter to me since I make consistent profits in spite of labeling "incorrectly". Yes, you are right. It should probably be labeled an ABC. But in my way of counting....does it really matter? I like to say that I apply wave counting in a practical way and not a textbook way. Meaning that as long as my wave count puts me in the correct direction, it works. Whether its an Y or a C? Again, you are correct but I'm not caring if it is a Y or a C. What does matter to me is knowing if its in a correction or is it in an impulsive phase. And if it is in a correction, where in the correction is it in, what kind of correction is it and when it MIGHT end and the next impulse will possibly begin. That is what is important to me. Not if I labeled everything correctly if that makes any sense.
So even though I labeled that a wave Y where you say it should be a wave C, when that 5 waves ends and I SELL and make profit, will it really matter if I labeled it right? I'm not caught up in correctness as I find that if you worry too much about being absolutely correct, you miss the move when it happens.
With all that being said, thanks for pointing that out as you are correct about the wave Y. Its ok to label it a wave C if it makes you feel better.