Tuesday, November 22, 2011

>stubborn 3rd wave in impulse(elliottwave)

Usually most of wave traders spend most of their time on charts trying to catch stubborn 3rdwave. As the rule says 3rd waves are usually the longest and fastest in terms of price
travel .It requires lot of practice and imaginative mind to figure out the perfect wave setup
for trade,With practice one can get hold of waves unfolding which in turn gives a solid edge
in timing much better than any indicator can provide.
Few things which can improve your wave counting ability!!
1)Count waves from a higher time frame and then gradually come to lower time frames.
2) Always try to count waves from important lows or highs.
3) Go through as many charts possible.
4)Counting impulse(5 waves) is easier than counting a correction or abc:).
5) Label the chart with your count with date and check at a later date how you fared.
this should be a daily routine,This can help in understanding market moves in detail.
6)Always have a alternative count in mind and as market moves figure out which count
fits best.
7) Gap ups and gap downs usually happen in 3rd wave,Also indicators can be in oversold or overbought for most of the time when market travels in 3rdwave.

I am attaching a chart of a stock punjloyd to show the wave counts
the green arrows are 3rd wavesHope these points help in counting waves cleanly.


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