We use Elliot Wave as a road map and a guide (as a tool that's
all), but not an end all thing and not to predict price targets.
Our primary thing is using trendlines, divergence, and indicators,
price action.
The Elliot Wave that we use is different than what you you have
seen and the standard Elliot Wave, it has been optimized and redone
to take out some of the subjectiveness.
However our thought is this, if the wave count seems obvious,
then fine take a look at it. This was the Case with the SOX
recently, you could clearly count 5 waves down with a divergent
low. On the other hand, if the wave count is at all 'iffy'
then ignore
it.
It's not an end all thing, it's like an indicator that works
sometimes and sometimes it doesn't, but that doesn't make it not
useful or something we should throw away.
Traders become good at looking and using certain things, for
example I know a trader who trades primarily using a modified RSI
setting of 21, he looks for it to bounce off even numbers and he
traders GOOG very effectively doing this. Now when I look at it, I
don't see much, but it works for him, so be it.
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We use Elliot Wave as
HUI
Posted by matt on 17th of Aug 2008 at 03:10 pm
We use Elliot Wave as a road map and a guide (as a tool that's all), but not an end all thing and not to predict price targets. Our primary thing is using trendlines, divergence, and indicators, price action.
The Elliot Wave that we use is different than what you you have seen and the standard Elliot Wave, it has been optimized and redone to take out some of the subjectiveness.
However our thought is this, if the wave count seems obvious, then fine take a look at it. This was the Case with the SOX recently, you could clearly count 5 waves down with a divergent low. On the other hand, if the wave count is at all 'iffy' then ignore it.
It's not an end all thing, it's like an indicator that works sometimes and sometimes it doesn't, but that doesn't make it not useful or something we should throw away.
Traders become good at looking and using certain things, for example I know a trader who trades primarily using a modified RSI setting of 21, he looks for it to bounce off even numbers and he traders GOOG very effectively doing this. Now when I look at it, I don't see much, but it works for him, so be it.