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FREQUENTLY ASKED QUESTIONS

What is Elliott Wave Theory

and how to use it in trading.

What is Elliott Wave theory?

The Elliott Wave theory is a technical analysis method that is used to analyze financial market trends and predict future price movements. It is based on the idea that stock prices move in repeating patterns, or waves, which can be identified and used to make investment decisions. The theory was developed by Ralph Nelson Elliott in the 1930s and has since been widely adopted by traders and analysts.

What is the Harmonic Elliott Wave theory?

The Harmonic Elliott Wave theory is a modified better version of the classic Elliott Wave theory that is based on the idea that the natural rhythm of any financial market is a three wave pattern that can be associated with “action-reaction-resolution”. Those three step moves on charts showing prices of stocks, futures or crypto currencies form repeating and easy to recognize patterns that are based on specific Fibonacci ratios. These Fibonacci ratios are believed to be related to natural patterns and harmonic relationships that are found in nature, and they are used to identify specific points in the market where price movements are likely to occur.

I used to practice the classic Elliott Wave theory but then switched to the Harmonic Elliott wave theory because I found that the modified version predicted prices of stocks and futures moved in a more consistent manner than the classic Elliott Wave theory. This higher accuracy of the Harmonic Elliott Wave theory is based on specific repeating patterns, detailed rules  of how recognize and confirm them and, finally, unconventional retracement and extension ratios. Together they produce more stable and reliable forecasting tool of market behavior than the more subjective wave counts used in the classic Elliott Wave theory.

How to use the Harmonic Elliott Wave theory in trading?
There are several potential benefits of using Elliott Wave theory in stock trading:
(1) It can help traders identify trends. By identifying a specific patterns on a stock chart, traders can identify whether price has been moving in a trending impulsive wave or in a corrective pullback. Corrective pullbacks provide traders to make “reversal to mean” type of trades. Trending moves provide great opportunity for trend following strategies.
(2) Wave analysis provides valuable insight into market psychology. The Elliott Wave theory suggests that market trends are driven by the collective psychology of market participants. By understanding this psychology, traders can anticipate in advance how the market may react to important events like FOMC decision or release of important economic indicators like CPI or NFP. In addition, application of wave analysis allows traders to recognize moments when an up trending market enters the latest stage of a rally when price reaches new unsustainable highs being pushed up by retail traders driven by fear of missing out.
(3) The Harmonic Elliott Wave provides a trader with a powerful tool to measure extensions of the previous waves to correctly pin point potential targets of rallies and declines. That allows traders to successfully plan and execute exit strategy.
(4) It can help traders to manage risks and preserve capital: 
– Elliott Wave theory can help traders to identify points of invalidation for specific scenarios that should be used as levels at which to set stop-loss orders.
By identifying trend reversals and potential turning points in the market, Elliott Wave theory can help traders manage their risk by providing a framework for determining exit points.
Stop-loss orders are used to protect against unexpected sharp market moves that may result in significant losses by automatically selling opened position when price reaches a certain level.
However, it is important to note that, like any technical analysis tool, Elliott Wave theory is not a guarantee of future performance and should be used in conjunction with other analysis techniques and risk management strategies.
What markets can I use it with?

You can recognize repeating patterns from the toolbox of the Harmonic Elliott Wave theory on any timeframe, from 1 min charts to Daily, weekly or even monthly timeframes. The same patterns works on any market including stocks, indices, forex, futures, currencies and commodities.

You can benefit from wave analysis either you are a short term day trader, a scalper or a long term investor. The Harmonic Elliott wave analysis is a powerful foundation for any style of discretionary trading because it provides you with skills of “reading charts”. A skilled wave analyst needs one glance at a chart to identify several most probable scenarios for price development for weeks ahead.

Can I win every trade by applying wave analysis?

Unfortunately, the Harmonic Elliott wave theory is not the “Holy Grail” or crystal ball many desperate traders look for. 

Very often that technique let you justify several equally probable scenarios of where price of stocks can move next. Consider the wave theory a framework or a toolbox that will make you a more disciplined and focused trader.

That tool will let you know when it is time to open a position, what targets you should expect and what are important support and resistance levels to be used as protective stops. Our tools once properly learned and practiced will give you a significant edge against other traders. You will be able to add to chart Red Target Box where price will most likley turn down and Green Traget boxes where price will most likely find support.  You will be able to identufy when price turns into an impulsive (trending) mode and when it comes back in corrective pullbacks. But after all you will have to accurately apply all the rules of the theory to come up with a reliable forecast. Even experienced wave analysts sometimes make mistakes or overlook patterns.

Is this friendly for beginners?

The Harmonic Elliott Wave theory is not a rocket science. It will take you two or three weeks to learn main patterns and rules that would let you distinguish between patterns.

I recommend new members to take my low cost introductory video course “Predict the Next Market Move with the Harmonic Elliott wave theory”. That course will build a solid foundation.

If you want to move up to a new level and learn how to turn a wave count into an actionable trading plan I recommend you to enroll next into my advanced video course “How to Trade Like a Pro”.

The best way to learn practical application of the wave analysis in trading is to join my educational and trading chat room hosted on Discord platform. This is where I explain in details how I identify patterns, how I apply extensions and retracement tools and what the most important ratios we should use. You will also find dozens of lessons and educational case studies beyond the material covered in the two video courses.

Please set reasonable expectations. It may take you several months of regular practicing to become a professional wave analyst . I encourage all members of my chat room to share their wave counts and get my ongoing feedback and guidance that significantly speed up their learning curve.

As any journey to mastery, a path to expert level in wave analysis will require from you time and efforts. But I am proud to have several members in the chatroom who grew up to a professional level.  Now they consistently produce reliable forecasts and quite often identify patterns and trading setups I did not see.

 
What is a chat room and how it works?

Once you subscribe to the indicators you get access to a live chat room hosted on Discord platform. You do not have pay extra for access to the chat room. The good thing about using the chat room is that not only you see multiple alerts in real time but you can follow my real time comments and explanation regarding current signals and setups. Every day I review the signals that worked and failed to work helping traders to learn the best practices of trading signals generated by the indicators. In the chat room you can always ask me any question or make any suggestion about improving the indicators.

How much does subscription cost?

We offer a low priced introductory Limited plan that includes extensive coverage of ES-mini futures and S&P. That plan includes 10 – 20 updates throughout every trading day and additional macro updates on Sunday.

You can start a trial of the Limited Plan for only $9.99 that will give you a two week access to market updates, micro and macro analysis and actionable trading setups. 

We offer an All-inclusive Premium Membership for a monthly rate of  $149.99/mo. You can save more than 20% by getting the quarterly plan.

We offer you 15 day money back guarantee if you change your mind after trying our toolkit.

 

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