Elliott Wave

1 . Tradable waves are impulsive waves 1,3,5 and corrective C wave.

2. Impulsive wave 3 is the steepest and most dramatic wave of all waves and occurs on the highest volume and highest Elliot Wave oscillator (or MACD) of all waves. Wave 3 is never the shortest wave.

3. Wave 1,3,5 are made up of five minor waves and most corrections are a-b-c corrections. Irregular corrective waves exist.

4. Wave 5 will usually exceed wave 3 on lower volume than wave 3 high.

5. Wave 5 can fail and just form a double top with wave 3 instead of going to higher levels.

6. Most traders get whipsawed and lose money in wave 4. Don't assume wave 4 is over until you can clearly see an a-b-c wave pattern with the correction ending 38 to 61.8% between wave 2 and wave 3. Wave B is usually 50% of wave A and should not exceed 75% of wave A. Wave C is 1/1.62/2,62 times of wave A.

7. If wave 2 is simple, then wave 4 will most likely be complex. Vice versa.

8. Corrective wave 2 stats: 12% retrace within 38% of wave 1, 73% retrace between 50-60% amd 15% retrace below 62%.

9. Impulsive wave 3 stats: 45% reaches 1.6 to 1.75 wave 1 , 30% reaches between 1.75 to 2.62 wave 1, 15% reaches 1 to 1.5 wave 1, 8% reaches greater than 2.62 wave 1.

10. Corrective wave 4 stats: 60% retrace 30% to 50% wave 3 , 15% retrace between 24% to 30% wave 3, 15% retrace 50% to 62% wave 3.

11. Impulsive wave 5 stats: Use Fibonacci calculation. Wave 5 usually ends between 1.0 and 1.62 the length of beginning of wave 1 to end of wave 3. Failed wave 5s do occurs.

12. If you enter a potential wave 5 trade at wave 4 Fibonacci retracement level (ie 38 or 50 %) , set your stop somewhere aorund 62 % retracement level because the normal max wave 4 retracement level is 61.8%.

13. Trade ONLY in the direction of waves 1,3,5 and C on the primary time frame you use for entry and exit.

14. To confirm or filter your trade, trade ONLY in the direction of waves 1,3,5 and C on the the higher time frame.

14. Wave count can change.