Hi everybody,
Inspired with the latest posts in one of my favorite threads,
Trading Eur/Usd with uncle Elliot, I decided to post my opinion on something I've mentioned in my previous posts, and that's my opinion about trading Elliott Waves on different time frames.
Part of what I've posted in mentioned post was:
Quote:
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Originally Posted by idejan The best advice I can give is that Elliott doesn't works that good on small time frames and for scalping. (it works but it requires a great great experience, and if you could do it people will probably call you NEO  ) |
The Wave Principle is about the market behavior, or the tendencies and trends in the social behavior (psychology of the crowd).
If you are too close to, or in the crowd, you could not possibly see the crowd, how it behaves and which direction it goes. You will see those near you, their moves, emotions etc.
E.g. From the view point of an antelope there is no particular direction where it's heading when it starts running, since it follows the first next to it. It doesn't even knows why's doing that at the moment, or if it's a wise to do. But it is not realy important how wise it is, since their primal part of the brain sends an impuls which says "preserve". Preserve life. Their trail is zig zag and seem quite confused (doesn't those moves on a 1 min charts on important announcements seem similar?).
But if you pull out and lift your camera above the herd, you are starting to get some direction. And going even further above you don't see all those small zz all those antelopes in the herd are doing, but you'll see the HERD going in some pointed direction.
Traders primal instinct says preserve too. They need to preserve their money.
Isn't that an example.
moments of inspiration
But in fact, it is a good example.
So, it is my humble opinion that EW works best on Daily charts, since it filters all those small moves, using Hourly for checking subwaves and determing the confirmation - invalidation levels (S/L below invalidation).
ID