Using Elliott wave analysis in a practical way

[Wide Tailz]

I still use EW and it's about the only kind of TA that works for me on longer time frames, aside from defining the main trend and its pullbacks. To easily see the impulse waves that offer the best odds, look for the horizontal supports along a trend. And I'm still here, 9 years after my other post up the thread, only because of risk management! (it is The Answer)

 

[murray t turtle]

I do not understand why nobody talks about role of volume analysis in Elliot wave theory. Using volume surges (increases in volume) as a confirmation of the beginning or end of a way, not just confirms the theory but also may explain processes behind a wave.

As an example, a strong volume surge during the price decline mean the panic selling. Volume is 2-side transaction and for each transaction we have equal number of buyers and seller. We have price decline because we have bigger number of bearish traders who is willing to sell at lower price. When we have increase in volume it means that new bullish traders are coming to satisfy the needs of sellers. Huge volume surge means big wave of bullish traders (attracted by low price) came and started to buy from those who sell in panic. Here, if the Bulls are strong enough (increase in volume is big enough) we may have shift in supply/demand balance toward the Bulls and the confirmation of the end of a Bearish wave

%%
TRUE+ practical.
BUT also true + practical= on a huge number of uptrends [ + some downtrends] ;
have average, below average , barely average ,+ above average volume.
Volume is measured on that remark with 50dma , with SPY benchmark for example............
So confirm volume would be my first choice but so many times , not a very common occurrence, large sample.
Same principal, some RE buyers + sellers get messed up on a sale with one house LOL=too little volume to count, unless you are that one buyer or seller LOL
Certified RE appraiser gets 3; I like more than that myself.
Good points, victor.