Elliott Wave Principle for trading in financial markets was developed by Ralph Nelson Elliott back in 1930’s. It’s still very popular among all sorts of chart traders and is even more popular among Forex traders. Even EarnForex.com features a section with daily Elliott Wave videos. Despite that, I cannot say that I am a huge believer in the Elliott Wave theory. It is very subjective, in my opinion. 10 different Elliott Wave analysts will see 10 different patterns on the same chart. I’ve never used EW patterns in my trading and I rarely consult technical analysis that is based on them. Nonetheless, I tolerate the idea that Elliott Wave Principle is working for many successful Forex traders. And how about you?
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To my mind as you’ve just said the EW was too subjective , too much for me .
But Who have said: when macd is > 0 that’s the uptrend . Or when Stochastic is higher than 80 that’s means the oversold .
The point i’m trying to make is that it’s does metter if we use the subjective way to take position , or some others things , the point is that it just does work. Because there aren’t any rules which give 100 % chance .
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admin Reply:
February 28th, 2012 at 6:15 pm
There’s a difference. With EW’s it’s like if one analyst sees Stochastic at 80 and another sees it at 40.
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