TIMESTAMPS
00:24 – INTRO
Thus far, we have learned the standard rules and guidelines for EW.
We have also learned how to use EW in conjunction with Fibonacci, Fibonacci Time, Channels, etc.
Now, we will learn how to put it all together.
01:05 – UTILITY
We should always be monitoring for new patterns and probabilities via recording statistics.
With regards to EW, for example, a standard rule says, “It is impossible to get a Triangle in a Wave 2”, but if we continue observing Triangles in Wave 2, then this rule can be ‘outdated’.
★ We must adjust our own rules with the times.
Many EW traders lose money because they prefer to follow rules than to take a perfectly good trade setup, when presented.
02:30 – IMPLEMENTATION
We can primarily use EW on the Daily and Weekly time frames. We do not need to go on to the 5-minute time frame to verify Sub-Wave Structure.
One should journal and record statistics on all trade combinations. A favourite method to get targets is using Fibonacci Extension, Expansion and Negative Fibs together when trading All Time Highs.
When trading Internal Waves, a favourite method to get targets is using Fibonacci Extensions, Horizontals, and Liquidity.
If you see a good trade setup where an EW rule is not followed, take the trade still and then record statistics on if the trade is won or lost.
03:52 – TIPS & TRICKS
★ If you are a beginner/intermediate to Elliott Waves, then you should follow a trade
★ Once you understand the Elliott Waves rules 100%, then you can start trading with it.
★ When you are comfortable trading with Elliott Waves, then you may trade off the ruleset and record statistics.
★ Elliott Waves is a HTF tool, not used as a primary tool for trading, and ALWAYS required confluence to take a trade setup.
★ The LTF Sub-Wave count is not as important if your count on the HTF is valid.
★ If you see a perfect Flat, but the Sub-Wave structure is 3-3-3, then you can trade it to record statistics to see if it has worked or not.
★ Just because someone 100 years ago said a Flat needs to be 3-3-5, this does not mean that now they need to be.
★ For confirmation on a new rule, one should aim for greater than 1000 trades in a data set with an average win rate above 75%.