EURUSD : [Learn n Earn Series -1]Tryst with Elliot wave theory !
Hi Guys !
This post will be different from my usual style. Its gonna be combo of how to use Elliot waves to our advantage and trade setups also explained. So this will be Learn n Earn Series, just an info before jumping into analysis, please note that I follow My own style of Elliot rules which is slightly different from primary Elliott rules. I have modified those to extract more pips out of Elliott waves rather than standard one.
If you have just started to learn about waves, don't get confused with its variations and don't try to learn everything. Start slow n steady, one by one you can gain perfection, for easier understanding and better implementation stick to basic standard version of Elliot wave count (12345) for sometime, then you can move on step by step.
Here we have EURUSD chart and I have started the wave count from 1.1120's in EURUSD. For those who get confused about how to count elliot waves, identify swing high or long and count alternative swing high/lows {inner swings you can skip, its ok }. Drawing Elliott is as simple as that. In the above wave count Wave 4 comes into territory of Wave 1, according my own rules Wave 4 is valid till it reaches 50% of wave 1.
The above wave count didn't give much chance for conservative traders except the channel setup around 1.1250's and there is just few pips are available to catch before end of Wave 3. The same goes for Wave-4, it was one swift move down after end of wave 3, only the pullback channel breakout gave us Entry chance to get on with Wave-4. So, even after we have drawn Elliott waves we shouldn't trade blindly, we should enter after proper setups in the corresponding direction.I have explained past trade setups to stress this point, else I will directly go on explaining current scenario.
Now, EURUSD is ranging, almost channeling to be specific bouncing up and down within channel. So if we get proper breakout to upside around (1.1260's) it will be the signal for start of Wave 5 & we can initiate our Long positions in EURUSD and our targets will be around previous resistance zone 1.1360's. But this won't be smooth ride to the top, we will have pullbacks, so we should be careful in trailing stops.
Even if we get downside breakout, we can initiate short trades in EURUSD and trail stops till 50% Fib levels(1.1180's) of Wave 1. Depending upon what happens after that Wave-5 can become valid or get invalidated.So in the current scenario, wait for the channel breakout and enter trade with proper stops. Its always good to check your tradeplan once before initiating any trade.
I hope this post has provided some insight about counting Elliott waves and how to trade them with valid setups. I have just started on Elliott's, this is not extensive explanation, will do more detailed articles explaining concepts with valid chart examples one by one. As mentioned at the start of this post, this will be Learn n Earn Series.
Hit Likes if you like the content, Feel free to leave comments/opinions even if you have slightest doubt...
Happy Trading !
This post will be different from my usual style. Its gonna be combo of how to use Elliot waves to our advantage and trade setups also explained. So this will be Learn n Earn Series, just an info before jumping into analysis, please note that I follow My own style of Elliot rules which is slightly different from primary Elliott rules. I have modified those to extract more pips out of Elliott waves rather than standard one.
If you have just started to learn about waves, don't get confused with its variations and don't try to learn everything. Start slow n steady, one by one you can gain perfection, for easier understanding and better implementation stick to basic standard version of Elliot wave count (12345) for sometime, then you can move on step by step.
Here we have EURUSD chart and I have started the wave count from 1.1120's in EURUSD. For those who get confused about how to count elliot waves, identify swing high or long and count alternative swing high/lows {inner swings you can skip, its ok }. Drawing Elliott is as simple as that. In the above wave count Wave 4 comes into territory of Wave 1, according my own rules Wave 4 is valid till it reaches 50% of wave 1.
The above wave count didn't give much chance for conservative traders except the channel setup around 1.1250's and there is just few pips are available to catch before end of Wave 3. The same goes for Wave-4, it was one swift move down after end of wave 3, only the pullback channel breakout gave us Entry chance to get on with Wave-4. So, even after we have drawn Elliott waves we shouldn't trade blindly, we should enter after proper setups in the corresponding direction.I have explained past trade setups to stress this point, else I will directly go on explaining current scenario.
Now, EURUSD is ranging, almost channeling to be specific bouncing up and down within channel. So if we get proper breakout to upside around (1.1260's) it will be the signal for start of Wave 5 & we can initiate our Long positions in EURUSD and our targets will be around previous resistance zone 1.1360's. But this won't be smooth ride to the top, we will have pullbacks, so we should be careful in trailing stops.
Even if we get downside breakout, we can initiate short trades in EURUSD and trail stops till 50% Fib levels(1.1180's) of Wave 1. Depending upon what happens after that Wave-5 can become valid or get invalidated.So in the current scenario, wait for the channel breakout and enter trade with proper stops. Its always good to check your tradeplan once before initiating any trade.
I hope this post has provided some insight about counting Elliott waves and how to trade them with valid setups. I have just started on Elliott's, this is not extensive explanation, will do more detailed articles explaining concepts with valid chart examples one by one. As mentioned at the start of this post, this will be Learn n Earn Series.
Hit Likes if you like the content, Feel free to leave comments/opinions even if you have slightest doubt...
Happy Trading !
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