Elliott Waves - The only way to Wave Introduction Part 2
00:23 - UTILITY
- Log Scale is best to be used with Elliott Wave counts that contain a lot of historic price action (1 year or more) and/or extreme volatility.
- In an Elliott Wave count, Wave 3 is generally the longest and strongest wave of the overall 5-wave impulse.
- Degree labels can be used to differentiate between different time frame Waves.
02:13 - IMPLEMENTATION
- We will move over to the chart to see a real example.
- Rule: While Wave 1 or 5 can be longer, Wave 3 cannot be the shortest wave.
02:23 - EXAMPLE 1 - BTC LOG SCALE
- We can see the BTC chart on the Weekly time frame meets the criteria (historic price action + volatility) for Log Scale to be used.
- Switching to Log Scale now we can clearly see a 5-wave impulse emerge.
- We are shown how the 5th wave can be subdivided into smaller waves.
- Tip 1: when moving down a time frame, you can also move your EW count down one degree. You could change the colour too, if you would like to differentiate them further.
- Tip 2: When working with Elliott Waves, you can disable the magnet tool to make the pivot points easier to manipulate.
- We generally label Elliott Wave counts with the biggest degree on top and the smaller degree below.
07:56 - TIPS & TRICKS
- Understanding when to switch from Normal scale to Log scale is important.
- We can use both Log and Normal scale within an Elliott Wave count, regularly switching between the two to verify Fibonacci pulls.
- Degree labels can help us understand the Timeframe of a particular count.