1. Elliott waves in modern trading environment is very different from the stock market realities just before or after the second world war, 8 decades ago. though the underlying logic is same, the rules and application have gone sea change. it now pertains less to retail trader's or investor's motive and psychology and more to the behavior induced by the stronger minority hands into the weak majority to get their way with the final aim of trapping and beating them. it is more of a dodging tactic today for profitable stealth accumulation distribution strategy.
2. contrary to the prevalent understanding, Elliott Wave is not always present. neither it should obviously be expected. be it retail traders' herd behavior or operator tactics, Elliott waves emerge when there is time for it. during tight ranges these are either not there or highly deformed to be identified or fairly called Elliott waves, at least from any practical utility pov. otherwise any lines looked through Smirnoff for sufficiently long time will start resembling like a perfect Elliott Wave.
3. Elliott waves don't exist in total isolation. they are best visible from a particular lens of particular time chart. eg. the wave visible in 5 day chart is part of the one in 1 month chart which further is part of 1 year chart and so on. to understand the destination of a particular wave, look at its father wave. therefore, if you don't see the wave in one time frame, adjust the time focus and look at a shorter or bigger time frame chart. when elliot wave is absent from the short term/swing/positional chart, it is still visible intermittently in intraday chart.
4. it is a myth that the 3rd wave has to be the longest.
5. it is a myth that wave 4 can't enter territory of wave 2.
6. it is a myth that wave 5 has to rise to the highest point.
7. Elliott Wave is less well defined in stocks than in indices as the latter are averages, besides other reasons.
ashokji: Js ji that means anything can become defunct anytime... whatever strategy we build can be defunct anytime... so keep changing .... It's not an easy job, we have not come up with even one perfect one ...so forget about another in my life time....
js: absolutely. every strategy and till is evolving beyond recognition. we have to change. keep evolving, keep adapting. it is painful if possible. but that's how it is. one reason everyone is still a victim after decades.
struggle for survival. survival of the fittest. operators hate fully trained. they just want literate.
amit: Js ji here does it means that Jo retailers ko dikhta hai according to Elliot me vo hota ni hai.I mean the one which looks obvious doesn't happen and the operators take this as a beating tool for trapping retailers.And what happens is quite unexpected but with in the logic of Elliot theory.am I right js ji.
js: it is a game of cat and mice. cats don't want mice to become cats. it's not Tom and Jerry where mice wins
: partially yes. they can't accumulate distribute without Elliott reality. but the dodging requirement results in a thousand forms of waves while we are still stuck with 8 decade old Elliott measuring tape around our tailor necks
: over the coming weeks I will try to practically show you
8. you can't trade every situation with Elliott Wave. only reasonable trending ones.
9. larger the trader base and more developing the economy better the Elliott Wave works. it used to with great in US in early 19th century. no more. look at their chart patterns and that of day UK.... markedly different than those of India.
10. if you don't find a full Elliott Wave despite your best efforts post training, stop looking. there isn't any in that situation.
11. you can't accurately mark Elliott Wave points without the help of other indicators
12. there are trades beyond Elliott waves
13. Elliott waves is a knife very effective to cut through small and medium trends. they are almost indispensable. but in trading feast you also need forks and spoons.
No comments:
Post a Comment