Correct Elliot Wave Setup?

Hi All,

I was going thru EOD charts of CINEMAX and found some intresting patterns. I guess its a good setup for Elliot Wave.



Wave 1 has started from almost base of previous correction at sub 41 levels. Wave 2 has retraced to near perfect 38.2% level of 59 and Wave 3 of impulse has formed. If theory is to be followed, this counter should go up to 91 odd levels which is 161% of Wave 1.

As a disclosure, I am not sure if this setup is correct, but just I am trying to learn EW and apply principle to price patterns.

Is this setup correct?

hi Fanatic Trader,

First there is three basic rule to qualifies E-Wave.
i am also newbie learning E-Wave i wish to share
some thing that i have learn from others!

E-Wave is 5 wave which direct the Trend of any
time frame.Rules are

1. Wave-2 cannot trade beyond the beginning of Wave-1.
2. Wave-3 cannot be the shortest in price of waves 1, 3, and 5.
3. Wave-4 cannot make a daily close into the closing range of Wave-1

Also,
Wave 1,3,5 should be 5 wave
Wave 2,4 may be correction

Please Add Stochastic and Fibonnic Time Retracement to
ensure your wave

Hey Kainiteh,

Thanks for the prompt response. I would keep the points mentioned in mind. Any inputs on using Stochs and Fib Time zones?

please be carefull before posting Elliott rules,because above stated rules are all rubbish
ranjan

Hey Ranjan,

Can you be please more specific? Why do you think EW is rubbish ?

Hi Ranjan,

Still we are learning phase! please spot the mistake that we have posted that may be helpful!


Thanks

Hi,
Please read book "High Probability Trading Strategy" By Robert Miner.
i have learn E-Wave and ABC correction with Dual TF Momentum,Price Pattern,Time Pattern and Specific Objective Entry and exit!

Really that book change and give me a confident to trade for real rather
than testing a strategy in Paper!

Thanks

Rule 2 mentioned by you in incorrect. Wave 3 should not be the shortest wave in 3 impulse waves....but it nowhere says that it should be the longest.In wave 1 extensions wave 1 is the longest and in wave 5 extensions wave 5 is the longest...

But in most cases you will find extension in wave 3 making it longest though it is not necessary under EW principles....

Best wishes, Trade well....

Smart_trade

Thanks.. i misunderstood 2nd rule with different meaning!
i have modified my post as exactly as in the Book...