Friday, May 3, 2013

How to Identify Elliott wave count

Here is a technique I use for day trading.

  • Use 1hr chart for day trading, to see the trend.
  • See any tops or bottoms, Head and shoulder, Double tops or bottoms. 
  • It is the maximum area of support or resistance.It may act as starting or ending of Elliott waves.
  • Draw trend line , trend channel  for ew counting.
  • Identify whether it is wave 1/5, or a/c.
  • We can also use divergence to identify wave 3/5,a/c
  • We can draw channel for wave detection.
  • apply wave rules for wave counting.
  • Use stochastic to see the change in this time , it can also identify wave with rate of change.
  • Use MA short term , intermediate term, long term 13, 21,50,100,200 to see price reaction with thse MA.






 


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