Elliot waves. Why cant fully trust this theory.
You can find many websites, even free books of Elliot Waves Theory. But if you read it by on eye, can understand its kind of shamanistic predictions. law of the universe - from small to big, law of complication and development. To build waves, should start from max. minimum time frame -1 min. than 1 min group in 5-15 min, than to 30 min, 30 min group to 1 hour, 1 hour to 4-8, and than to daily. the waves are divided into 10 degrees, *subminute, *minute ,*minor , *intermediate, *primary, *cycle, *supercycle, * grand cycle.Depending on the source, there may be different names and divisions, but the essence is about 10 of them. The length of the wave depends on the length of the previous wave, this is calculated by Fibonacci extensions. The waves can contain impulses and elongations, the waves can be lateral or the extensions can be pulses. And the main thing is how to understand this all. Where the exact coordination of movement, measurement, distribution ,. what if to miss? Suddenly it was an impulse but I built it like a wave, maybe it was an extension in wave 3, or is it ABC? in general, you understand that this algorithm is based on your personal judgments and experience, and from those sources that you used in studying waves. When this system of construction attends 2-3 internationally recognized postulates, then it is worth starting to study it. Now it all depends on who and how he sees, and you can prove that there is no way, but skolko people, so many opinions. Not waves determine the movement of prices, but people, their judgments, analysis, the market's opinion of the traded instrument, the conclusions based on previous levels of support and resistance and the general trend. Now the theory of waves is a guessing on the coffee grounds and dancing with tambourines around the fire under the starry sky.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.