Elliot Waves Guide Lines

Tradable Waves are Impulsive Waves 1, 3, 5 and Corrective"C" Wave (of Wave 4 corrections).
Impulsive Wave 3 is the steepest and most dramatic Wave of all the Waves and occurs on the highest volume and highest Price Oscillator Histogram of all Waves. Wave 3 is never the shortest Wave.
Waves 1, 3, 5 are made up of 5 minor Waves and most corrections are a-b-c corrections. Irregular corrective Waves exist.
Wave 5 will usually exceed wave 3 on lower volume than the wave 3 high.
Wave 5 can fail and just form a double top with Wave 3 instead of going to higher price levels.
Most traders get whip-sawed 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 to Wave 3. Wave B is usually 50% of Wave A and should not exceed 75% of Wave A. Wave C is 1 x Wave A or 1.62 x Wave A or 2.62 x Wave A.
If Wave 2 is simple, then Wave 4 will most likely be complex, and vise versa.
Corrective Wave 2 Statistics: Only 12% retrace within 38% of Wave 1. 73%retrace between 50% to 60%. And 15% retrace below 62%.
Impulsive Wave 3 Statistics: 45% of the time Wave 3 reaches 1.6 to 1.75 times Wave 1. 30% of the time between 1.75 to 2.62 times Wave 1. 15% of the time between 1.00 to 1.60 times Wave 1. 8% of the time greater than 2.62 times Wave 1.
Corrective Wave 4 Statistics: 60% retrace between 30% to 50% of Wave 3. 15% retrace between 24% to 30% of Wave 3. And 15% retrace between 50% to 62% of Wave 3.
Impulsive Wave 5 Statistics: Use Extended Fibonacci calculations to determine the price zone for wave 5. Wave 5 usually ends between 1.0 to 1.62 times the length of the beginning of Wave 1 to the end of Wave 3. Failed Wave 5's do occur.
If you enter a potential Wave 5 trade at a Wave 4 Fibonacci retracement level (i.e.: 38% or 50%) set your stop somewhere around the 62% retracement level because the normal maximum Wave 4 retracement level is 61.8%. Be sure to adjust your position size accordingly. Then once you are sure you are in wave 5 â€œadd-onâ€ to your position size using any â€œARTâ€ signal that you can.
Trade ONLY in the direction of the Waves 1, 3, 5, C (of Wave 4) on the primary time frame that you use to base your entries and exits.
To confirm or filter your trades. Trade ONLY in the direction of the Wave 1, 3, 5, C (of Wave 4) on the HIGHER time frame of one Fibonacci degree.
Wave counts can change and it is possible at many points to have alternate wave counts possible. For example you may think you are in a Wave 4 correction until the correction exceeds its maximum retracement level and instead turns into an impulsive Wave 3 in the opposite direction! So, you must adhere to your stops!

Elliott Waves Trades

Elliot Waves Guide Lines

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