Elliott Favorites
- Thread starter dima777
- Start date
No, they pretty much are useless in all markets and frames.
Now you understand. TA is believed to probably be used by 90% of the traders. And it is also believed that number of traders lose their money.
Most TA-based traders will be exiting the trading profession in body bags.
I find a lot of VALUE in looking for "measured-moves" and "a-b-c" countertrend moves within a technical framework.
For example, the other day we had an "a" rally that was 16.5 points in the SPX followed by a "b" wave pullback that found support at a fibonacci retracement ( 1249.37 ), and then the big rally on Tuesday was 1.5 times the size of "a" at 1274.17 in the SPX, with 1274.12 being the ACTUAL high recorded.
By taking fib multiples of the initial leg up ("a") you can then project a "c" leg price target after the "b" pullback.
Using 1.382, or 1.500, or 1.618 have worked very well for me.
Low and behold, the high of Tuesday at 1274.12 pretty much fit that
( 1.5 x A, which was 16.5 = 22.80) target!
22.80 + 1249.37 = 1272.17
Reaching this target allowed one to get out of some trading longs, and look to go short - - - knowing full wave that it was simply an A-B-C counter-trend "bounce" and would break hard to the downside next.
For example, the other day we had an "a" rally that was 16.5 points in the SPX followed by a "b" wave pullback that found support at a fibonacci retracement ( 1249.37 ), and then the big rally on Tuesday was 1.5 times the size of "a" at 1274.17 in the SPX, with 1274.12 being the ACTUAL high recorded.
By taking fib multiples of the initial leg up ("a") you can then project a "c" leg price target after the "b" pullback.
Using 1.382, or 1.500, or 1.618 have worked very well for me.
Low and behold, the high of Tuesday at 1274.12 pretty much fit that
( 1.5 x A, which was 16.5 = 22.80) target!
22.80 + 1249.37 = 1272.17
Reaching this target allowed one to get out of some trading longs, and look to go short - - - knowing full wave that it was simply an A-B-C counter-trend "bounce" and would break hard to the downside next.
Sasquatch, Loch Ness Monster, yeti, UFOs, astrology/horoscopes, fairies, leprechauns, pixies, etc. etc. etc...
Funny, they spark a lot of interest and yet are pretty groundless.
You confuse popularity with evidence. So it is now easy to see where you fit in on the continuum towards profitable trading...
THERE MUST BE WATER AROUND HERE SOMEWHERE...