Herb's wave count and and fib expansions

[herbman73]

Hello Immy / John / Grant

What do you think about my way of counting e-waves and drawing fib extension on M5?

Finally then my timing is done on M1 with simple setups 1&2 with respecting current e-waves on M5.

Is it right that on e-wave 5 just the price has to make a lower peak that on e-wave 3 or should also AO peak lower on e-wave 5
than on e-wave 3? Many times I have seen a lower price on wave 5 but AO wasn't peaking lower...

E-Waves stuff is new for me and I'm still reading Bill Williams book Trading Chaos...

Thx a lot in advance for your feedback. ^:)^

Herb

[immy]

what a great observation. If you continue reading you will learn that this is what we call Divergence. Price makes new low (in above example) but AO does not make a new Low. which means as you put it, "Many times I have seen a lower price on wave 5 but AO wasn't peaking lower..." that AO shows us and in fact confirms wave 5 when the new peak is not as low (or as high in uptrend) as it was in previous peaks. This very concept, the very simple concept, of looking at Peak and then crossover and peak again with divergence is Elliott Wave. This is what I've been on about all this time. you really don't need to know Elliott Wave. You do not need to count all those little waves. All you have to do is wait for Setup 1. Trading off setup 1 would make sure you enter into Wave 3. Read this twice, if you trade off setup 1 and price does move you will put yourself in Wave 3. Alligator open = Impulse wave, Alligator Close = Corrective wave, First peak of AO = peak of Impulse wave (possible Wave 3) then peak of AO with Divergence = Impulse Wave (possible wave 5)

Again I'll say, we do not count Elliott wave for making entries, we do not trade Elliott wave, we trade the setup. the setup makes sure we trade only impulse waves. Which means it might put you in to Wave 1, or 3 or 5. they are all impulse waves. This is what we are after. our prime objective is to trade Impulse waves and avoid corrective waves. cheers

[shinny]

[quote="immy"] what a great observation. If you continue reading you will learn that this is what we call Divergence.


Hey Guys,

I had the very same trade on Friday, see attached.

As soon as I got confirmed divergence I banked my pips.

Paid 2 small rents, or as I like to call them sometime "finders fees" lol, gotta pay the market a little to find the big pips!!

Had a great Friday, banked well in excess of 150 pips.

Cheers!

Shinny

[Grant]

Evening guys,

Herb, good job on the count there, spot on. As Imran has already said wave 5 price will be lower but AO peak will be higher.

Looks like we all took the same set up, which was a belter...

For those who are not "into" Elliot Wave please dont go over board and think you have to know the ins and outs of leading diagonals or contracting triangles etc... THAT IS NOT HOW WE TRADE AIMS!!!!

AO is the perfect guide for showing us the last impulse wave 3, ie the lowest or highest peaks..

That being said, i have attached 2 charts of the same trade at LO on Friday. In this case we are looking at a short move and the m5 wave 3 is marked by the vertical yellow lines and is numbered in black. You will also see the rest of that 5 wave sequence again numbered in black...

The M1 chart breaks the m5 3rd wave down into its component parts between the same yellow lines and is marked in white numbers...

So what i am trying to say in a very long winded way is that wave 3 on an m5 will always be made up of a complete count of 1-5 waves on m1...

I hope that makes sense but if it doesnt then ask away..

cheers

Grant

[immy]

PERFECT.

I'd say One thing though. Focus on counting waves on on the AO and not the price bars/candles. and another thing
Counting Waves Using AO is like sitting in a helicopter and seeing the territory from above where as trading the setup is being on the ground. I hope it helps
Thank you Grant Loved this sequence.

[John Wimberley]

Imran has said it all. Well done

[McDuck]

Hi Guys, I'm new around here and have been enjoying the read...the elliot wave thing is a bit of a mind trip!! but as stated earlier if we enter as per set up 1 and 2 we will be in the right wave.right??............anyhow here is my real query.

Is it fair to say that we only know that we have had a wave three ( the biggest most profitable wave) in hindsight..so we are hoping we are in wave 3 at the time right we are in the trade. So the only real advantage of knowing a wave 3 has past is that it may prompt us into being careful and avoiding wave 4 but getting us ready for a wave 5...is that right??

I guess my real point is you can't predict wave 3??....am i right

Actually if it's okay another question. When trading M1 in the direction and trend of M5 do we take into account the elliot wave count on M5 or M1??

thanks a bunch

Rick ( my very first post)

[immy]

...Is it fair to say that we only know that we have had a wave three (the biggest most profitable wave) in hindsight..so we are hoping we are in wave 3 at the time right we are in the trade. So the only real advantage of knowing a wave 3 has past is that it may prompt us into being careful and avoiding wave 4 but getting us ready for a wave 5...is that right??

I guess my real point is you can't predict wave 3??....am i right

Actually if it's okay another question. When trading M1 in the direction and trend of M5 do we take into account the elliot wave count on M5 or M1??

Rick ( my very first post)

HI Rick! Welcome to AIMSters Community! I wish you enjoy your time and learn and share and excel!

You got the point! Congratulations. Knowing wave 3 is exactly for that purposes. So You know that W4 may be round the corner and get ready to protect yourself. Wave 4 is where a trader gives back all the profits of W3. (Nature likes to balance things)

As Grant always says, Knowing wave count helps with take profits!

Do Not base your entries on wave count, rather base your Profit Taking exits and Avoiding trades on wave count.

Use it as an opinion, Not a FACT not a GROUNDED ASSESSMENT, use it as an ungrounded opinion to boost your confidence. Base your entry technique on your Grounded Assessments that is the indicators, that is the SETUP. When its a setup 10 people will agree it is a setup, as long as they are trading the same Setup but for wave count you can never be sure that they all may agree with you, but YOU yourself must know and believe which wave you are in, that is enough, other's opinion counts but does not matter. IMHO>

Well, we can NOT predict wave 3 but we know that Setup 1 gets us into a Wave 3 almost 80% of the time. If it does not we exit with a quick 'rent' payment.

That second question, I'll let you find the answer yourself. Once you understand the Fractal Geometric nature of the market (indeed the universe) you would know why exactly do we trade on m5 and m1 in the first place. Think waves within waves within wave.

Try this. Find a strong big h1 candle. put a vertical line on it, break it down to 60 candles. i.e. go down to m1 and see what the AO tells you during those 60 candles, the broken down h1 candle. You will see a pretty amazing self repeating pattern. Cross of AO then Peak of AO then cross back of AO opposite colour, then cross back in the orginal direction but this time with divergence. Thats all there is to it!

cheers

ps: I'm watching charts with one eye and writing this on the other. What to do when there is no setup?

[Herbert]

Awesome! Awesome! Awesome!
Reading the responses in this one thread alone and i see the all so subjective/elusive elliot being put on the AIMS stage for all to recognise, nowhere to hide......
The way elliot should be used...

Just reading this thread and I am already relaxed about my charts.
Cognitions all over the place (lightbulbs popping like a christmast tree)

What is really getting to me now is not seeing this before on my own...... morning has broken.

(My first post, still gottta cover materials, what a start!! hehe)

WOW!

[autopro]

Just reading this thread and I am already relaxed about my charts.
Cognitions all over the place (lightbulbs popping like a christmast !

Hey Herb, you leave my Christmas trees out of it, u know I,m the tree master ! )

Seriously, this has opened my mind too, just need to use Fmm locator to spot the wave 5 divergence for exits and we got it all dude! IMHO!

JEFFD