As the larger degree trend was down, it was still a good idea to keep looking for sells. Then (for users of the full MTPredictor v6.0 program), a Wave 5 high unfolded just before lunch. Wave 5 should be considered more of an Advanced technique, but do you all see how this “fitted in” with looking for sells yesterday.
Yes, “traditional” EW analysis says that 5 wave is “impulsive”, so the trend is up, BUT (from my own experience) I have found that many times (as in this example) it can be a correction. Yes, in this example the ES decline off this Wave 5 high to just below the start of the 5-wave sequence, into the DP where a low unfolded. This is why I treat waves “in isolation” just for low risk trade opportunities. I believe trading is about making money and not for discussing what is or is not technically correct. I leave that for the armchair Elliott Wave so called experts who are more interested in theory rather than actually making money.
So the end result – a nice +4.9R Profit (ignoring slippage and commission).
Steve
Yes, “traditional” EW analysis says that 5 wave is “impulsive”, so the trend is up, BUT (from my own experience) I have found that many times (as in this example) it can be a correction. Yes, in this example the ES decline off this Wave 5 high to just below the start of the 5-wave sequence, into the DP where a low unfolded. This is why I treat waves “in isolation” just for low risk trade opportunities. I believe trading is about making money and not for discussing what is or is not technically correct. I leave that for the armchair Elliott Wave so called experts who are more interested in theory rather than actually making money.
So the end result – a nice +4.9R Profit (ignoring slippage and commission).
Steve
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