HOW-TO cope with Elliott Wave patterns that fail

1 באוק׳ 2021

In this "How-To" help video, we take a look at How Elliott Wave patterns often fail half-way through. 

If any of you have followed Elliott Wave analysis for any length of time, you will very likely have been frustrated when what looked like to be a perfect Elliott Wave pattern then failed and did not do what it should have done. This then makes analysis very difficult and frustrating.

Here at MTPredictor, one approach we take is to assume that Markets are random about 50% of the time, so this means that any Elliott Wave pattern always has the potential to fail at any point. It also means that half the time, there are no clear Elliott Wave patterns present on the Chart either. So we decided to accept this, but then to only work with the 50% of the time when the market pattern was clear. And then only look for particular setups, within that clear period.

Please take a look at the video, we were take a look at a recent example on the 15min NQ. And look for setups on the shorter time frame (3min in this example), when, "and only when" the larger degree (15min) picture was clear.

I hope this "How-To" video tutorial has been helpful and shown one approach, that we take here at MTPredictor, to help cope with the uncertainties of Elliott Wave Analysis and failing Elliott Wave patterns. Please understand that this is just the approach we take here at MTPredictor and have done for the last 20 years since MTPredictor was launched in 2001. So please feel free to disagree with our approach, we are just presenting here here as what we do and we understand that this is not the only approach and other people will always have different ideas or different ways of approaching this.

Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always use Stops and keep your losses small.