Herd Mentality of Traders and their Reactions form Patterns of movement/momentum within these cycles and data points. The need to label and represent this pattern in a meaningful way respecting the same rules is where Elliott Wave comes into its own.
Elliott Wave Theory, created by / named after Ralph Nelson Elliott.
Mr Elliott concluded that the movement of the stock market could be predicted by observing and identifying a repetitive pattern of waves and is true for both Bear and Bullish trends. The Elliott Wave is basically a common-sense method of measuring herd mentality of the markets.
Elliott Wave Trading can be very complicated with some traders and educators talking about 13 waves, inner waves, corrections, and some convoluted technical nonsense! Then they talk about ABC corrections and complex corrections, all trying to look clever! This totally over complicates what is, at its core, a simple interpretation of trends.
If we “Keep it Simple” by concentrating on Hard ElliottWave rules that cannot be broken. Then combine these with important observations, using simple indicators then we can have a simple and repeatable elliott wave trading strategy.
The 5th Wave of an elliott wave sequence, by its nature, is the highest probability move in a trend. As all the other hard rules and majority of the important observations have been met in the lead up to a 5th wave move. So, this is the “Simple and Repeatable elliott wave trading strategy” that we are looking for.
And by only concentrating on trading the highest probability move of an elliott wave sequence, we can block out all the other noise and concentrate on a simple set of rules!
This is why our Founder, Paul Bratby, decided to filter out all the complicated and unnecessary technical crap from elliott wave theory and just concentrate on that Golden 5th wave trade. So, he set about working with software developers with those hard rules and observations in mind. This is where his proprietary trading software was born.
An elliottwave trading indicator suite that would take away the need to remember those hard rules and simply apply them to a chart by labelling the Elliott Waves. Then those important Elliott Wave 4th wave pullback observations were made into 3 simple and graphical representations on the chart. No need for those complicated Fibonacci retracement and extensions measurements! In the latest version, there is an automatic 5th Wave target zone printed. Again, no need for traders to get confused with all those technical Fibonacci extension measurements.
The Elliott Wave trading strategy accompanying this trading indicator suite is easy to follow – traders just must stick to the rules! Can you stick to a set of rules and repeat them over and over again?
This comprehensive but simple elliottwave trading indicator suite with the concise trading strategy can be used whether swing trading stocks, forex, or cryptocurrency. It can also be used on intraday time frames on futures, forex stocks and even when spot trading cryptocurrencies.