ScanWave v.0.2 MT4 Indicator

ScanWave v.0.2

1.  Wave counting on the chart in MT4
2.  ShowChannel - output channels on schedule
3.  ShowTargetWaveLines - Output targets on schedule
4.  SaveAnalysisOnExit - Saving the markings on the chart

Analysis of waves in accordance with the rules Elwave.

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ScanWave v.0.2 .rar

Wave after wave

You can ask any analyst Elliott waves, where the market, and it certainly will give you a prediction, based on the calculation of pulse 5 and 3 corrective waves, along with a note from the current situation, like "We are in wave c of iv larger waves within the 3 big wave. " Analysts focus on the calculation of Elliott waves to predict where the market. However, the actual calculation of Elliott waves will be known only after the wave has already formed a combination that often little useful to the trader, even if the calculation is correct. As traders, we strive to find the entrance to the market, where there is a high probability that the market will go in one direction and not in another. Moreover, we try to minimize our risk, finding entry points into the model, so that the difference between our entry level and level of refuting the model was as small as possible.

Does this mean that the Elliott Wave Principle has no practical benefit to traders? Quite the contrary. Elliott Wave Principle is extremely important for traders, however, if you're using it to trade, rather than to predict future direction.

AWE-Elliott model
Often transmitted by the key component of Elliott Wave Principle is that the successive waves correspond to geometric form. Successive waves sootnosyaschiesya in geometric form, are the key to a market structure based on simple ratios of equality.

When the successive waves of attain equal (AB = reliance reliance CD), the market creates what we call AWEmodel Elliott (Alternate Wave Equality - Equality of successive waves). The practical benefit for traders is that the AWE-Elliott model is repeated continuously in highly liquid markets in all stages of the trend. Four types of AWE-Elliott model are shown in Figure 1.


Figure 1 presents the following types of AWE-Elliott model (left - right): impulsive Bull, mismatch Bull, impulsiveness bear, bear mismatch.

In AWE-market models, Elliott has already formed a point of ABC. You keep track of whether the market and when to reach the point D. If the market reaches the point D, and AWE-held model, the market develops. If the model fails, it is a sign that the market will continue to move in the direction of support CD. We use "WaveTracker" graphics package "eSignal" to automate the process of determining AWEmodeli Elliott. Each of the models in the following examples were identified in advance using the "WaveTracker".


Examples
In highly liquid markets, such as the S & P E-Mini, AWE-Elliott models are repeated with a high degree of accuracy. Figure 2 shows an example of corrective bear AWE-Elliott model for a 30-minute schedule of S & P E-Mini.

Please note that reliance AB exactly equal (to teak) in support of CD +12.00 points. This example also shows the importance of all sessions, because the point A in the AWE-model (1179.25) was recorded on Globex at 1:30 AM. Traders who pay attention only to the day's session, missed the point of this model. In Figure 2, at the time of the achievement of 1172.25, "WaveTracker" highlighted the level of 1184.25 as a potential sale, and gave us 3 hours for further analysis. Based on price action, there were several additional reasons why the 1184.25 was the point of sale. This model helps you identify such conditions, where trade has a high likelihood of success with minimal risk of 6 ticks or less.

You can use the AWE-Elliott model to place the transaction on the exact maximum of the exact minimum. Demonstrated by the fact that happened on 13 October 2004.


Figure 3 shows that the market was opened up to trade directly in the point D corrective bear AWEmodeli Elliott at 1127.25 (supports AB and CD, made up +11.50 points were equal to within 1 teak). This was the point of sale.


Figure 4 shows that the market has moved down to 17.75 points to 1109.50, forming impulsive disservice AWE-Elliott model, which supports AB and CD are exactly equal to 10.25 points. Then, you can see that the point C (1119.75) coincided with a point D in the model of Elliott AWE-less level (AB = CD item in +2.50 in teak). This was also the point of sale.

The proof is in the market
If this is your first exposure to AWE-Elliott model, you can treat with skepticism to the examples demonstrated, suggesting that this random isolated fragments. However, AWE-Elliott model, suitable for trade, there every day. The proof of this is on the market. The market is never wrong - it just is what it is, no more, no less, and when the market repeats these patterns every day, the proof is indisputable.

Is AWE-Elliott model is "the Holy Grail cup"?
So, whether AWE-Elliott model is "the Holy Grail cup"? Of course not. AWE-Elliott model simply is a key component of the market structure and market structure, in turn, is a key component of the price action in the market. AWE-Elliott model is constantly occur during the trading day. In half the cases it works, half does not. Failure AWE-Elliott model is also important to continue the movement in the direction of previous motion. The practical question for the trader is what AWE-Elliott models are candidates with a high probability to trade with low risk. The answer is connected with a full understanding of the other components of the price action, which coincide with the AWE-Elliott model. When one or two aspects of technical analysis are consistent with the AWE-Elliott model, the probability of response model significantly increased. If you are well prepared, you can place close to a deal with the stop order, which for the S & P E-Mini rarely exceed 6 ticks. If you are wrong, it will not be a serious loss for you. In the above schemes, you can estimate the ratio of return for risk.

Trading, not to predict
Elliott Wave analysts rely on the calculation of wave propagation to predict where the market. Successful traders do not foresee - they sell. Successful traders have the advantage in the markets, and they think in terms of probabilities. There is only one "Holy Holy Grail" in the trade, which is to find their advantage in the markets and learn to trade them consistently with the proper management of money. AWE-Elliott model, combined with other components of the price action, give you the advantage in the markets. The format of this article can not fully explain the other key components of the price action that can be used to combine with the AWE-Elliott models. If you can learn to think the categories of probability and consistently deal with the proper discipline in the management of money, then you are on the path towards becoming consistently profitable, and thus a successful trader.

Forex Magazine
based on www.esignaluniversity.com

Basic principles of Elliott Wave

Elliott wave theory is a collection of complex techniques. Approximately 60 percent of these methods is quite clear and easy to use. The other 40 percent is difficult to determine, especially for beginners. The practical and conservative approach is to use 60 percent of which are clear. When the analysis is not sufficiently clear, why not find another market that would be consistent with the model of Elliott waves, which is easier to identify. Over the many years of working with this approach, we developed the following practical approach to the Elliott Wave principles in trading. All of Elliott wave theory can be classified into two parts:

. Pulse model
. Correction model

Pulse model
Pulse model consists of five waves. These five waves can be in both directions, up or down. Below are some examples.

Pedigree impulsive motion

Descendancy impulsive motion

The first wave is usually a weak rally with a very small percentage of the involvement of market participants. Once Wave 1 is over, the traders make the sale at the Wave 2. Sales in the Wave 2 is very chaotic. Wave 2 finally ends, do not reach the new minimum, and the market begins to unfold for another rally.

Wave 2 does not reach the new minimum

The initial stage of the rally waves 3 are slow and the market finally reaches the top of the previous rally (Peak Wave 1). At this point above the top of Wave 1 added a lot of stop-orders. Traders do not believe in an upward trend and use this increase to add more short positions. To ensure that their assumption was correct, the market can not overcome the peak of the previous rally. Therefore, a lot of stop-orders placed above the top of Wave
1.

Wave 3 in the initial stage

Rally Wave 3 is gaining momentum and overcome the top of the waves 1. Once the maximum is exceeded 1 waves, triggered the deployment of stop-order. Depending on the number of stop orders that result from their operation GEPy may remain open.

GEPy is a good sign of development of Wave 3. After the operation stop orders, Wave 3 rally drew attention of traders.


After overcoming the top of the wave 1 start triggered stop-order, resulting in further movement can occur with GEPomSleduyuschaya sequence of events follows: traders, who initially took long positions from the base, finally, can breathe freely. They may even decide to add to positions. Traders who short positions were closed to stop the order (after painful reflection) conclude that the trend goes up and decide to buy at this rally. All this sudden interest sustains rally Waves 3. This is a time when most market participants agreed that the trend is upward.

After the closing of short positions on the stop order, the traders after some time join the rally

The decline in profits due to fixation in the Wave 4 is different from the chaotic sale in the Wave 2

Finally, the entire buying boom cooling. Wave 3 is nearing completion. Now begins fixing profit. Traders who held long positions from the base, they decided to close. They have a good deal and are beginning to record a profit. This leads to a rollback, which is called a wave 4. While the Wave 2 was a chaotic sale, Wave 4 is organized by a decline as a result of a fixed income. While fixation occurs profits, the majority of traders are still convinced that the trend is upward. They either joined the rally late, or so far remained outside the game. They believe that this decline due to fixation of return is an excellent opportunity to make a purchase. At the end of Wave 4 comes more buyers, and prices begin to rise again. Rally Waves 5 Waves 3 yields rally on enthusiasm and strength of the buyers. Increasing waves of 5 due to a small group of market participants. While the prices reaching a new peak above the top of Wave 3, the degree of force raise Waves 5 is very small compared with the increase in Waves 3. Finally, when the relatively small tail away interested buyers, the market reaches the peaks and enters a new phase.

Prices in the Wave 5 reach new peak, however, the strength of the rally are weaker compared to the rally Waves 3

Correction model
Corrections are very difficult to trade. Most traders, trading on the waves of Elliott, make money at the time of the pulse model, and then lose them at the time of corrective phase. Mismatch model (with the exception of the triangle) is composed of 3 waves, in contrast to the 5-wave impulse model. Pulse model is always accompanied by a correctional model.

Correction models can be grouped into two categories:
. simple correction
. complex correction

Simple correction
There is only one model in a simple correction. This model is called the "Zig-заг correction." Correction of Zig-заг - a model consisting of three waves, in which wave B does not restore more than 75% of Wave A. Wave C makes the new minimum below the end of Wave A. A wave of correction Zig-заг always has a 5-wave pattern. In two of the three types of complex correction (flat and irregular), Wave A has a model of three waves. Thus, if you can identify the model with five waves in the Wave A of any correction, you can then expect that a correction would be model-Sieg заг.


Waves A
Wave B is usually 50% of Wave A, but does not exceed 75% of Wave A.
Wave C is equal to the Wave A or 1.62 A or 2.62 waves

The group includes the correction of complex 3 models:
. flat
. incorrect
. triangle

Plane Correction
In a flat correction length of each wave is identical. After a 5-wave impulse model, the market declines of Wave A. Then the increase in the Wave B up to the previous maximum. Finally, the market is declining for the last time in Wave C to the previous minimum Waves A.


Incorrect correction
In this type of correction, Wave B makes a new maximum. The final Wave C may drop to top Waves A or even lower.


Fibonacci ratios in the wrong Wave
Wave B = 1.15 Wave A or 1.25 A Wave
Wave C = 1.62 Wave A or 2.62 A Wave

Triangular correction
In addition to the 3-wave corrective patterns, there is another complex mismatch model, which arises from time to time. This model is called "triangular model". The approach to the triangular model of Elliott wave theory is different from other kinds of triangles in the analysis. The five sub-waves of the triangle has been defined as A, B, C, D and E.


Triangles most commonly occur as a fourth wave. Sometimes you can see the triangle as the Wave B 3-wave correction. Triangles are very complex and complicated models. You must very carefully examine the model before taking it on the basis of any decision. Prices have a tendency to "fired" from the model triangle quick trigger.

When the triangles occur in the fourth wave, the market is "fired" from the triangle in the same direction as Wave 3. When the triangles occur in the Wave V, the market "fired" from the triangle in the same direction as wave A.


Rule of alternation
If Wave 2 is a simple correction, we should expect that wave 4 is a complex correction. If Wave 2 is a complex correction, then it is expected that Wave 4 will be a simple correction.

Forex Magazine
based on www.esignalcentral.com

At the crest of a wave

From 1981 to 1986, Tom Joseph razratal software "Advanced GET" - the world's first and only targeted software for the analysis of Elliott Waves, originally for their own trade. It was presented to the public in 1986. Since that time, he continued to pursue his studies, which have significantly contributed to the further development of the software, adding many new tools for analysis. Currently, "Advanced GET" is the active traders in more than 80 countries around the world. Since 2000, "Advanced GET" is also included in the package "eSignal" and is available as an additional service "eSignal", starting with version 7.1.

During his career, Tom held seminars for traders to trade on Elliott waves using "Advanced GET". He himself, being an active trader, is of great confidence in the training of trade, which he proposes for these seminars. Tom has always promoted its slogan "traders helping traders." "Many of my unique research and tools have been developed as a result of my real deals," said Tom. Tom has written a guide to Elliott Wave Analysis using the "Advanced GET", entitled "Practical application of a mechanical trading system using simplified Elliott Wave analysis and guidance for beginners called" Basics of Elliott waves. Although I use several trading techniques, one of the most preferred - this is one of the options to use Elliott wave - Elliott Type One and selling ", which is to enter the market after the completion of the restoration of Waves 4. I think trade is the method of "Type A" is the most easily identifiable in the model of Elliott wave sequence. And over the years I have developed tools and indicators that allow you to implement this trade with a high degree of accuracy. Using Elliott wave analysis can be obtained from multiple signals. Some of them become clear only after the fact. This can be good if you write a newsletter, which explains the events after the fact, but for a successful trade, you need a model that you can identify in advance with a high degree of accuracy. From my experience of trading in 1979, a model of Type A can be identified with a high degree of accuracy prior to its actual occurrence. After a long wave 3 rally starts fixing of profit and the market enters a phase of recovery. While fixing the profit continues, other market participants who believe that the trend is still in force, continue to enter the market. As soon as the pressure of a fixed profit over, new players entering the market, finally pushed the market to a new peak in Wave 5. One of the simplest tools that we developed in the "Advanced GET" - Elliott Oscillator. We found that the oscillator returns to the zero line, at least in 94 per cent of cases during this recovery, with a fixed profit. This is an excellent tool because it allows you to stand aside until the fixing of profit. When the Oscillator Elliott recedes to zero, this provides a very precise area where you can predict that the fixation of the profit actually finished, and the trend is ready to resume.

In addition to this, we created a fixed profit index (PTI), which is designed for use with oscillators Elliott, and measures the intensity of a fixed income. PTI calculates the value of a fixed profit over the previous Wave 3 rally. Historically, if the PTI remains above 35, this indicates the normal fixation of profit, which allows the market to resume its trend to a new peak. PTI less than 35 indicates too great a record profit and decreases the likelihood that will happen rally Waves 5. We also created a waves of Channels 4, which are displayed in three lines on the graph (blue, green and red). During the restoration of Waves 4, we would like to see that prices are kept above the blue or green channels. Based on statistical surveys, it provides a 70 percent chance of a rapid movement to the new maximum.

Let's look at an example.

Figure 1

In the above example shows the daily schedule of "Occidental Petroleum Corp." (OXY). After a big rally in the Wave 3, this action now is in a fixed income. Oscillator Elliott returned to zero, indicating that the fixation of return can be completed. Now, we look at the PTI. In our case, PTI has shown the value 73. Any PTI value more than 35 indicates that the fixation of the profit was not excessive. The price at the time was able to downgrade to stay above the green channel. In this case we have three conditions that give us the confidence to enter the market, and open long positions for trade in the next stage - Rally Waves 5:

1. Fixing profits ceased (Oscillator Elliott recedes to zero)
2. Fixing an organized way of profits compared with historical patterns (as indicated by PTI remaining above 35)
3. Prices remain above the green channel.

In the "Advanced GET" also developed a tool called the "Pan or missing" (MOB). MOB is activated from the maximum of Waves 3 and provides a potential target for the coming rally Waves 5. The design is very important because it allows you to calculate your potential returns compared to the initial risk taken. The ratio of risk to return must be greater than 2, to be able to conclude a deal.

Ellipse is a tool for Price and Time, which ensures the right time and price to the end of Wave 4. Typically, we look for the Ellipse to provide support for time and for the price. In the case of graphics OXY, tested support for the restoration of the ellipse, and kept very well.

Figure 2

Now it's time to bargain. To confirm the reliability of entry points, we developed a regression trend channel, which contains a price within the statistical limits. These statistical boundaries are calculated using the standard deviation of 2, which in essence means that the area between these boundaries contain approximately 94 per cent of the price. When the price breaks out of these boundaries, this confirms the change of trend.

Now, let's look at the actual trade.

As you can see in figure 2, the actual transaction was concluded at the passage above, the regression trend channel. The protective stop order is placed below the previous minimum Waves 4. As the price moves in the Wave 5 of the projected MOB, you can move the standard stop-order. Exit the transaction being executed when the target profit. All instruments (Elliott Wave, Elliott Oscillator, Channel Waves 4, Ellipse, PTI and MOB) mentioned in this article are available as an additional service in the software package "eSignal".

Forex Magazine
based on www.esignal.com

ELWAVE - Elliott Wave in practice

ELWAVE - program for analysis and application of wave theory in the exchange trade. ELWAVE includes a series of modules tailored to the specifics of various types of exchange transactions, aimed at investors of all styles and trends.

Basic set Elwave-Basic includes all the standard indicators and tools, but limited by the fact that only uses the format of the data «At the end of the day», ie, in real time, you can not use the program.
To use the full functionality of the application you need to purchase additional modules.

Modules Elwave

Additional modules include: Automatic Analysis Module, Trading Signals, Target Clusters Module.

It automatically Analysis (Automatic Analysis Module) uses as a base for the analysis of Elliott wave pattern, which is determined on the basis of the admissibility of certain types of waves found in the chart. This allows high accuracy to predict market conditions and prices (End of Day version works with these closures, and the version IntraDay - with the data in real time).

Unit of trading signals (Trading Signals) is designed to automatically detect the possibility of a potentially lucrative deal, as well as to close the position. If you have a module Trading Signals ELWAVE will automatically make the interpretation of alternative projection. The results of this interpretation can be found in the Inspector's reports (Summary Inspector). Upon completion of the analysis ELWAVE displays the most probable variant projection researched the market.

Module Targeted Clusters (Target Clusters) for the design of temporary and price clustering, based on Fibonacci ratios, and of great value in terms of identifying "turning points" trend (pivot points). Target Clusters module can only function if the availability of modules and module Automatic Analysis Trading Signals.

ELWAVE works with Windows 2000, Windows XP, Windows Vista. Screen resolution of 1024x768 and preferably higher.

ELWAVE and Metatrader

Set up import Real Time Quotes can be made from MetaTrader.
In MT4 you want to check on the DDE server (Tools - Options - Enable DDE server)


Then export quotes in the folder you want the currency "Elwave - Examples" - chasovki (Tools - Archive quotations - you currency - 1hour - exports). The more data the better, if you import chasovki, you can half-year program to set the level of the wave itself.


Then open Elwave and access these quotes. (Scenario - Create - History quotes.) Files of type to choose ASCII. In the right window to see the minutes. Open.


Then, correctly exposes the contents of the columns: Date, Time, Open, High, Low, Close, Volume. In the "Date Format" set YYYY / MM / DD

At the first session in ELWAVE to import an existing one (intraday) file with the extension. Elw, saved as a script, which will be loaded later. To update the data files in real time, you must verify the identity of their internal formats to the formats of incoming data.


But remember that the analysis of real-time data requires more time compared with the analysis of data closure.

Screenshots and interface ELWAVE

With regard to the overall impressions of the program and additional tools for the commission of the real stock market operations, the program is quite User-friendly interface.


Bar Chart Objects (Images) is designed for insertion of objects - lines and trend channels, high-speed line (Speedlines), the goals of price (Price targets), spirals (Spirals), the signal lines (Trigger lines), the rules of the golden section, Fibonacci price ratios. You can change the properties of all objects of the schedule, as well as panel indicators, double-clicking on the left button of the mouse myshi.S put an object on the schedule, "pulling" the button click, and upon reaching the desired location, release the button.

Panel Wave Labels (Legend of waves) to opt for the projection and when the analysis does not provide any action on the results. By default, the list of degrees of waves given superframe (Super Cycle).

Elliott Wave analysis in Elwave

If you have Automatic Analysis module can automatically save all the results of the analysis, ie all possible variants of the projection investigated the securities market, as the script. Scenarios own projections can be compared among themselves, which allows to explore all possible alternatives and their probabilities and obtain a clearer picture of future changes in prices.
Although ELWAVE will automatically re-analysis of each scenario, it is recommended from time to time (especially when you are not consistent signals) to analyze the schedule again.

You can also display all the rules and guidelines Elliott, and Fibonacci ratios, and find out why these graphics have been structured in one way or another: on what basis a particular type of wave has been confirmed or rejected as describing the real situation or wrong to it. The availability of this information in the system makes it not only the operating (trade), but also educational. ELWAVE not only helps explain the waves of Elliot, but also makes this class fun.

Five - wave reduction

When the ascending trend ends, the same crowd, which raises the price, provided the conditions for its subsequent decline. Holders of long positions are in a false sense of confidence, while the rally lost momentum and a model vertex. Since the "fast money" quietly went to the market, the trend reaches a critical point: the bulls suddenly realize that they were lured into a trap. In seeking to protect profits, they start to close positions. Price fails and sales are increasing wave after wave.

Common features of the model occur in the majority of price reductions. Several reasons are false, and fail. The volume has increased, as the losers sell their assets for undervalued assets ohotyascheysya crowd. The price is moving steadily downstream, reaching the goal for goal. Then also, as the collapse of hope, market-based instruments creates a final, multiple grounds.

Analysis of the model offers an excellent way for the short-term trading, in order to understand and earn the repeat behavior of the market. Not mudrstvuya archly, just look at the work of RN Elliott's 1930's and you will find five - wave decline. This structure for price correction is as effective today as it was 70 years ago. And, as the formula of the crowd, traders can use it, not going into details of a broader Elliott wave theory.

Five - wave reduction consists of three descending impulses and two corrections. The first pulse (top) adjusts upward trend, which has a price to a new peak. This summit begins setback prices, which ends with the second pulse (1): a technical breakthrough marketing tool. As with rising markets, the momentum can be very dynamic. But in most cuts, most powerful movement is usually left in the end. Since the 2nd impulse completed base paints a false picture calming, which slows down the sale, and even introduces a small purchase. Sales then suddenly renewed and accelerated in the final 3 of the third pulse (2), which is so emotional that the price of overcoming initial objective and reasonable support zones.

Emotion of this last wave extinguishes pressure sellers podbrasyvaya price. This rapid upward movement ignites the first impulse of the counter-significant trend. This strong rally then fails suddenly. As holders of long positions are preparing for more tests, the previous minimum unexpectedly retained. A new crowd then comes into play, and the price returns to the trend line of 1-2, as a dual basis. The balance of power is changing, and market-based instruments burst through the line in a new upward trend.

An experienced trader can see the five - wave reduction at all time scales from 5 min to monthly bars. These volatile movements fit perfectly into a large structure of greed, which is trend-cycle through a predefined and predictable process. And subconscious behavior of the crowd, presented this model is not only the financial markets.

Terms of trend line five - wave reduction

1st, 3-i and 5th wave pulses in the Elliott wave theory are 1-2-vertex in the calculation of reductions. Connect the 3rd (1) and 5 th (2) wave trend line. Ignore the 1-th (top) wave of this trend line may violate in any way. The first impulse after the decline could approach close to the trend line, but rarely violate it.

Forex Magazine
based on www.hardrightedge.com

Building a pyramid

V-shaped base in December, shows how much profit can quickly turn into big losses in the construction of the pyramid.

You are likely, like most traders, primarily concerned with the development of the trade plan, about whether, when, where and how to enter the market.

The second question concerns the position. Only then, in most cases, you might start thinking about the amount of your position.

Nevertheless, it is often the case, what is the size of positions to a greater extent than the input or output determines the success or failure in trade. Generally, the size of the position refers to the management of money, which is considered a matter for advanced traders, to study it after they learned the rest of the trade. However, the size of the position may be even more important for the beginner trader, with a more appropriate account for the positions of several lots, rather than one.

A simplified example of using the V-shaped foundation of the graph above illustrates what can happen when you are not careful enough, even when you are taking, it seems reasonable decisions regarding the inputs and outputs (prices rounded off to simplify calculations). Once the market has declined from the fourth vertex at $ 57, you sell a lot when the price falls below the 40-day moving average at 55 $ (A). Then, as the decline gets momentum, you sell an additional two lots at 53 $ (B), then prices are falling below the minimum in August-September, the usual movement, based on technical analysis. Now, do you think that you have captured the dynamics of the market and use the profits to sell four more lots for $ 48.50 when prices
dropped below the minimum in May (C).

At first glance, everything looks fine: with prices for a minimum of $ 47, you have a $ 10,400 profit in its seven short positions. But then the market turns sharply. A few days later, the price shot back up to an intermediate peak at around 51 $ (D).

Here is the status of your account when you reach $ 51 mark:

Selling 1 Lot of 55 $ ........................ 1.600 * $ 1 = $ 1.600 +
Sale of lots 2 to 53 $ ....................... $ 800 * 2 = + 1.600 $
Sell 4 lots on 48.50 $ ................... $ 1.000 * 4 = - $ 4.000
Total: - $ 800

Mindful of such a large profit, which you have, you do not want to accept the loss. Therefore, you hold their positions. Soon, the market is back to mark 53 $ (E).

Here are a condition of your account for $ 53:

Selling 1 Lot of 55 $ ........................ $ 800 * 1 = + $ 800
Sale of lots 2 to 53 $ ....................... 0 $ * 2 = 0
Sell 4 lots on 48.50 $ ................... $ 1.800 * 4 = - $ 7.200
Total: - $ 6.400

Your killing has become a catastrophe, even if the market initially fell, just as you were expecting. In fact, prices were only slightly higher than the level of $ 50.50 to get your position in the negative territory. You have heard of pyramid schemes, now you have experienced one of them in trade. Your last entry is the biggest and has the biggest losses if the market develops. In fact, you should make your first position of the largest, but it is not so easy to do when you can not, with certainty, belongs to the original signal - which is quite justified, because it can also be very dangerous if your signal will be erroneous.

Another option would be trading the same number of lots in each subsequent signal, while the number of lots would depend on the size of your account. For example, you can have an account, which can afford the four lots in paragraph (A), four in paragraph (B), four in paragraph (C) and four more in the low point - in this case, your «full entry» would have 16 lots. The market can not give you many opportunities like this, but you will not be exposing themselves to additional risk at any level of such market dynamics.

If you do not want to keep their profits in the market or to take more risk, you can manage this. Ideally, if the size of the positions that you sell, will provide an optimal balance between risk and profit. The purpose of such an optimal balance is based on how well, according to your expectations, your trading system will work and the size of your account. Some even suggest that you can focus on this aspect of trade and to forget about the entry and exit strategies, and while your results are quite satisfactory.

Triple Method

If your trade is based only on the study of indicators, you may find that adding additional methods could yield you a profit. Most aspects of the analysis is based on price and, in fact, very few consider the time at all, as any other than smoothing or averager. Methods Hanna, Elliott and Fibonacci - all offer the integration of time and price, and therefore may have some value for your trade.

W. D. Gann, RN Elliott, and L. Fibonacci, all have developed methods that may be useful for designing future areas that may be significant both for the price, and for the time. Some of the following statements can be for someone seem controversial, as many of the methods have not been validated in terms of theoretical academic standards. Counter-argument would be that a specific reason that the principles could be of some value, is that they can provide the trader profits. DP Morgan was a very successful trader, perhaps one of the greatest of all time. From his records we can conclude that he agrees with the methods Hanna, Elliott and Fibonacci. He said, "Anyone can become a millionaire, but if you want to become a millionaire, then you need astronomer. I think he meant the ratio of price and time that have been associated as a "spatial correlation".

Fibonacci found that a number of numbers, which increased 1,618 times, is very important. He found that this series has been almost universal in nature, from the structure or composition of plants and animals. A number consists of 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, etc. What is interesting - is that the ratio can be achieved many different ways and still come to the same outcome. The following will show that the time and price are directly linked. But first, a small mathematical puzzle.

Record on the sheet of paper, any two numbers. Start the Fibonacci sequence by adding the first number by the second number to create a third. Continue to add pairs of numbers to get the next number in sequence. For example: 72, 81, 153, 234, 387, 621, 1008, 1629, 2637, 4266, etc. (note that this is not the usual Fibonacci numbers). Large numbers in a row, regardless of what numbers are used as a starting point, lead to a ratio of 1.618 (ie 2637 * 1.618 = 4266).

Fibonacci found that this ratio - 1.618 is of great importance, and use it everywhere in his works. Please note the following:

0,382 * 1,618 = 0,618
0,618 * 1,618 = 1,000
1,000 * 1,618 = 1,618
1,618 * 1,618 = 2,618

With regard to the first schedule, please note the use of the ratio of 1.618 as follows:

On the left side of the existing scale reconstruction, depicting the range of the Fibonacci from 173,374 to 177,242. Using the principles of Fibonacci expansion, the subsequent maximum 179,633 would be an area which can be regarded as essential for the observation. Pay attention to the Fibonacci circles, using the same ratio. These instruments are functioning and back and forth in time and price. Gann and Fibonacci ratios are a few that are more significant than the other 90, 180, 270, and 360 degrees of rotation can be noted as a point of interest on the price and on time. If the tool shows at least two of these points of interaction, it has the potential to be significant in the third or fourth place. Please note that each time the price came in contact with the circle was a change in the direction of market movement. These interactions may hold the price in advance or rewind through many of the subsequent quarters.

On this chart the same building used by the previous minimum, and again shows multiple points of interaction as a significant advance, and back in time and price. Circles can be placed on the schedule in advance in anticipation of significant areas, using the Fibonacci tool circles.

A number of the Fibonacci numbers to be used in the circles and the restoration of Fibonacci. RN Elliot used the same sequence as the cornerstone in the development of Elliott waves. Elliott found that several models have been very ordinary, which show these relationships. It is necessary to bear in mind one very important thing - is that there are many continuous interactions at various levels. The same or opposite structure can exist at 1-minute, 15-minute, 45-minute, day, week, or monthly schedule. The interaction of various structures of the schedule may be important because it can reaffirm the point or area that may be essential for further movement.

This graph shows the Fibonacci series using the ratio of 1.618. Please note, as a tool to identify important areas for further movement. The first line in the bar 8 is located close to the first peak. Line 13 indicates the end of accumulation and the beginning of the next wave up to the line 21 and another peak. Please note, as some continue to be effective in indication of the future of important areas in bars 34, 55 and 89.

This figure represents the daily schedule of $ Compq. Shown in the chart the Fibonacci levels are built from each visually significant peak or minimum. Shows two reconstruction, one measures the distance of the maximum 24.01.01g. to minimize 04.04.01g. Another measures the distance from minimum 04.04.01g. to the most recent peak 22.05.01g. Whenever there is a restoration of a minimum price movement in 38.2%, the point from which recovery must mention the effective range for the Fibonacci point. Look at this graph that the minimum 04.04.01g. is the starting point of the circle, which uses a maximum 22.05.01g. as the range of 1.000. Other terms may be constructed from the maximum 24.01.01g. Which uses a minimum 22.04.01g. as a range of 1.000.

This graph shows the Hanna Square, beginning at the previous minimum, which shows many points of interaction with a fan-line as the price movement. Squares generally best to build a visually significant maxima or minima. Although many shapes and sizes of the square can be used and be useful, some have demonstrated more consistent results. These parameters include the height to width (increasing to intervals) 1x1, 1x5, 5x1, 10x1 and 1x10. (For more information, see "Geometry Hanna" in the number 21)

Another method of construction is to use a square of nine Hanna, to compute the natural sizes. (For more information, see "Numerology Hanna" at number 28)

I believe that each of the 8 allegations can be tested and proved if there is sufficient desire, time and resources. Obviously, this is a rather bold claim, but inspection of individual parts of the approval of the academic theorists ceased significant results.

1. Time predicts time. Time can be used to offer future significant area, by calculating the different time series. Some of the possible use include: a maximum to a minimum, at least to the maximum, maximum and minimum to maximum to a minimum. Tools that are available for this task include the cycle, square and fan-Line Hanna; cycle, circles and arcs Fibonacci.

2. Price predicts price. Price can be used to offer future significant area, by calculating various price series. Some of the possible use include: maximum to maximum, minimum, to a minimum, maximum and minimum to maximum to a minimum. Tools that are available for this task include the square and the fan through Hanna, the restoration of the Fibonacci and Elliott Wave.

3. Time predicts price. Time can be used to propose a future point, re-level or increment in the price. Tools that are available for this task include the fan-line and squared Hanna, circles and arcs Fibonacci.

4. Price predicts time. Price can be used to propose a future point, re-level or the increment in time. Tools that are available for this task include the fan-line and squared Hanna, circles and arcs Fibonacci.

5. Time predicts the price and time. Time can be used to suggest future points in price and time. Tools that are available for this task include the fan-line and squared Hanna, circles and arcs Fibonacci.

6. Price predicts the cost and time. Price can be used to suggest future points in price and time. Tools that are available for this task include the fan-line and squared Hanna, circles and arcs Fibonacci.

7. Price and time are predicting the price. Price and Time may be used in combination to offer a future point in price. Tools that are available for this task include the fan-line and squared Hanna, circles and arcs Fibonacci.

8. Price and Time predict Time. Price and Time may be used in combination to offer a future point in time. Tools that are available for this task include the fan-line and squared Hanna, circles and arcs Fibonacci.

Numbers or number can be created by any of the following methods and in so doing may well be viable: addition, subtraction, multiplication, division, erection of a square or square root calculation.

Relationships can also be represented graphically in simple geometric shapes: circle, triangle, square. They can be submitted in two or three dimensions: from the square to the cube of the circle to the sphere, etc. Three-dimensional representations can often demonstrate the speed of the price.

I feel useful when multiple methods lead to the same result. This means that the identification of areas may become essential for the movement and can provide profitable opportunities for traders.

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Wave approach

Elliott Wave Principles
Theory named after Ralph Elliott, who studied and identified recurring patterns in the financial markets and in nature. He believed that all human actions are influenced by those recognized Wave series. He has published several articles in 1939 in the Journal of Financial World. After his death, other analysts, such as Hamilton Bolton (1960g.) and Robert Prechter (1978) Elliott and elaborated on the study published in various books and newsletters.

The main force in the market is constantly fighting among themselves in a "tug". Every movement or impulse accompanied by corrective setback. This forms the basic concepts of Elliott wave theory:

1. Action is accompanied by reaction. That is, the trend is accompanied by a recovery.
2. The main trend will contain the five waves, followed by three corrective waves.
3. These 5 - and 3-wave cycles are the two pillars of the next wave of higher order.

For better illustration, trends or shocks will be marked with the letter "T", and corrective restoration letter "R". These 5 waves in the wave of the main trend would be represented as TRTRT. Thus, the main trend consists of 3 T-waves and R-2 waves. These 5 waves are marked with numbers 1, 2, 3, 4 and 5.

3 waves during a correction or rehabilitation would have been a model TRT and marked on the graph lowercase letters a, b and c. Correction is always movement in the opposite direction of motion 1-5.

Elliott wave theory says that each wave within the wave a 5-3 wave count of smaller cycles. Thus, large T-wave will be entered into 5 smaller waves in a model TRTRT. And to a large R wave, which is a correction for a large T wave would be concluded 3 smaller waves in a model of TRT.

Basic principles of Elliott Wave:
1). Waves trend divided into 5 waves.
2). Waves restoration is divided into 3 waves.
3). Wave 2 never recovers more than 100% of wave 1.
4). Wave 4 never recovers more than 100% of wave 3.
5). Wave 3 is always higher than the price level of wave 1.
6). Wave 3 is often the longest and never the shortest of Waves 1, 3, and 5.
7). If wave 5 does not exceed the price level of wave 3, it is referred to as bovine or Bear market, warned that the main weakness or strength in the market. Wave 5 has been reduced or cut off because the main weakness or strength.
8). The wave of the trend can be diagonal to form a triangular pattern, still including the 5 smaller waves.
9). Wave of Recovery can form a horizontal triangular pattern, and include 5 or more smaller waves.
10). If wave 2 is sharp recovery, the wave 4 will most likely be accomplished by a lateral adjustment and vice versa.
11). The lines, carried out in order to form a parallel trend channel, often indicate the upper and lower boundaries of the waves. Conducting trend lines through the points 1 and 3, it is possible to predict the end of wave 5, when the wave 1 and 3 are normal.
12). Wave principles does not provide certainty about any market impact. But they can be a tool for assessing the possible future market action.

Quite often, corrective wave restores Fibonacci percentage from the previous wave. Strong correction often restore the 61.8% or 50%. Lateral correction often recover 38.2%, especially in wave 4. Most analysts focus on the waves of the reconstruction and measured the height of waves to predict the price objective, using the Fibonacci ratio. Recommendation: Use the Fibonacci principles to predict the price and use the principles of Elliott, to determine when a wave of ripe or over. Look for the correlation of these two principles.

There are situations where the analysis of the market somewhat complicated and its interpretation is unclear. The Council is to keep confusing the model at rest until the next wave did not clarify the picture. The best approach is to apply deductive reasoning. Learn Elliott Wave principles, rules and models, and use this knowledge to determine what would be the likely course of movement of the market. The primary purpose of the analysis lies in determining whether skomplektovana whether the model is over whether the wave. If the market changes direction, as expected, then you caught a turn. If the market itself is bad, "your conclusion wrong, your money is in danger and should leave immediately. Recommendation: be patient and understand at first, where the market is in the unfolding model, and then deal with the trend.

Applying Elliott Wave
Recommendations divided Mary Ivy:
What is the Elliott Wave? Elliott Wave - is a graphical model, nothing more and nothing less. It is entitled, like any model. These rules also relate to the Fibonacci proportions.

The rules are: the markets are moving in the impulsive and corrective manner. Impulsive motion has 5 waves: 1, 2, 3, 4, 5. These 5 waves in motion impulsively must not overlap. Nonoverlapping wave should be marked with numbers as shown below. Characteristics of impulse movement - non-overlapping waves, as in the figure, where the ground wave 4 and wave 1 peak does not overlap. Corrective waves overlap. Normally corrective Movement has 3 waves, which are marked a, b, c.

Wave 3 can not be the smallest. Or wave 3 or wave 5 will be the longest. Waves 1, 3, 5, a and c are the pulse. Waves 2, 4, and b are the correction.

Why study the Elliott Wave? It helps to stay the course of market movement, as close as far as possible.

Torgu I use Elliott Wave? Yes, every day. I will combine with other Elliott wave patterns to find the entry point with less risk than if I traded only with the waves. Transactions in which I play - those where the Elliott wave clearly emerged from the waves of 2 to 3, from 3 to 4 waves and waves of 4 to 5.

What do I do when I see the market movement? I use a tool formations in order to know whether the market in the abc corrective model or 1-5 pulse model. My tool formations is such that c = 100% and 3 = 162%. If the market moves past the line of 100%, then I know that he is in the momentum flux. This is done as quickly and clearly as soon as there is movement.

Up to 100%, I do not know whether a pulse or a correctional model. I do not know how I will mark the waves - 1 or a, or 2 b, 3, or c, because they can become any.

In the usual model Gartli, wave 3 is not a 3 - this wave C. Wave 3 is not the right size - it reaches only 78% of recovery (for details, see the "butterfly effect" in the number 24).

Models Gartli mainly occur in the correctional market. 5-Elliott wave patterns occur most frequently on the impulse market. The following demonstrates how the market had been raised, ranging from a minimum of 2003. Model Gartli should be a model for Gartli because the market, although improving, is in a bear trend.

How do I sell? Here are two of the day, which are excellent examples of combinations of models and Elliott wave patterns butterfly Gartli. The market has formed a triangle, which was broken at the bottom of the beautiful in the 5-wave structure. All the proportions of the Fibonacci met.

Mismatch model, a developing right, goes up. This mismatch creates a wedge model, which is easier to notice in the next image.

Yellow arrows designated entry points.

Do Fibonacci ratio for this? Yes. They must not only know but to be able to quickly design goals, once you feel that you are in the unfolding model.

Are some waves? Not quite. Often, Elliott's model does not give exact entry points, and it is necessary to move to a smaller format in the interim to find a more accurate log with a small risk. This is very good if there are other models, which confirm the 5-wave structure or a model of recovery. This may be GEPy, wedges, canals, etc.

The model presented below, has a lower maximum (LH) with divergence in the MACD. "HH" notes a higher maximum. "LL" - a lower minimum.

I knew that I was in wave 3? No, at that time did not. But I had a triangle, to confirm the trade, and during its implementation, I realized that this is a 3 wave.

Here's how the triangle in the afternoon level (red circle). Yellow dotted lines have not yet been, but the level of "C" (yellow horizontal line). As I see it: if the market will not be able to form wave 3, it will fail. What will indicate to fail? If AB = CD. Because the "C" did not reach 162%. And if the market fails, it will make 5 waves down.

I held the lower border of the possible models of "head and shoulders." When the market did its five waves down, I expect that it would violate the neck in the 5th wave and provide an excellent opportunity for a short position. But this did not happen. The model did not work, and what happened when the script failed? The market went up like a bubble of air in the water. This is what happens when the failure of models - the market changes direction.

I knew that this day will trend upwards (red circle)? No, but a "head-shoulders" has failed and an excellent model of 1-2-3 was formed, at least 78% recovery Gartli.

Formation observed range was excellent "1-2-3" to the lower ground - or double basis with a good divergence in MACD, bear this out.

All this is happening fast enough. You can not use it, if not in perfect proportion and you know the rules, at least, the models shown in this article. The study of Elliott Wave is gradual. First you learn the rules of proportion and then begin to recognize the form of waves, and these forms show you the calculation and the calculation tells you about the same proportions.

Why not use the Elliott Wave? In this case, the size of the stop-orders would be too broad. Why not use the system log, on the basis of oscillators? Because I love the goal, I moved with Fibonacci ratios. I also love the Elliott Wave. I really like the shape. I like to assume when they become available. I like to take the wave. I love alternatives that Elliott wave theory suggests, on the market movement.