What You Can Do with Elliot Wave?
If you have read my previous Blogs and you do not know about Elliot wave then please read wiki
It has three Basic rules:
Wave 2 never retraces more than 100% of wave 1.
Wave 3 cannot be the shortest of the three impulse waves, namely waves 1, 3 and 5.
Wave 4 does not overlap with the price territory of wave 1, except in the rare case of a diagonal triangle formation.
Elliot Wave provides following benefits that a trader desperately need for a profitable trade:
1.Current Direction and Next Direction of the Trading Entity
Just at a glance of the chart and Fibonacci calculation can tell you where we are and what will be the next move.
2. Anticipatory Trade for Next Move.
You must have heard about anticipatory bail 😊. Have you ever thought that we can place trade orders in the anticipation of a movement. Yes friends with the help of Elliot wave calculations we can anticipate the next move and so we can place our order for the future movement rather waiting for it.
when the crude was trading at 57.50 can you imagine it will change direction and go up till 58.90 and when it was at 58.90 no one can imagine it will go down but I had placed the buy order at 4020 in MCX in the anticipation that if it will create the wave 2 then it have to come down.
3. Small Stop Loss: If wave 2 ends near to start of wave 1 then do not afraid of wave 2 fall. God is helping you because it makes stop loss very small i.e. the low of wave 1.
If wave 2 do not retraces more then 50% then small and low risk trader can take the stop loss of low of wave 2. We need to make sure the wave 2 is ending and wave 3 is starting.
....To be continued
It has three Basic rules:
Elliot Wave provides following benefits that a trader desperately need for a profitable trade:
1.Current Direction and Next Direction of the Trading Entity
Just at a glance of the chart and Fibonacci calculation can tell you where we are and what will be the next move.
2. Anticipatory Trade for Next Move.
You must have heard about anticipatory bail 😊. Have you ever thought that we can place trade orders in the anticipation of a movement. Yes friends with the help of Elliot wave calculations we can anticipate the next move and so we can place our order for the future movement rather waiting for it.
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| 23 and 24-May-2019 Crude Hourly Chart |
3. Small Stop Loss: If wave 2 ends near to start of wave 1 then do not afraid of wave 2 fall. God is helping you because it makes stop loss very small i.e. the low of wave 1.
If wave 2 do not retraces more then 50% then small and low risk trader can take the stop loss of low of wave 2. We need to make sure the wave 2 is ending and wave 3 is starting.
....To be continued
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