Elliott Waves Trades

By Pavlos D

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OUR METHODOLOGY ON HOW WE PICK

WINNING TRADES 

Our Swing Trade Strategy Is Based On 3 KEY TOOLS

When Analyzing Stock Charts

Elliott Wave Theory

Fibonacci Retracements and Extensions

Ichimoku Cloud

Elliott Wave Theory

Elliott Wave Theory

 Seeking for Wave 3 & Wave 5 trades either in uptrend or downtrend.

Fibonacci Retracements and Extensions

Ichimoku Cloud

Key Points For Trade Selection

Initially, I identify stocks and exchange-traded funds (ETFs) suitable for trading.

This approach differs from a long-term buy and hold investment strategy.

  • I predominantly focus on analyzing price patterns within stock charts. I do not delve into earnings reports or company forecasts.
  • I hold a firm belief that fundamentals such as earnings, products, and management are indeed significant.
  • Furthermore, I am of the opinion that a stock's price is indicative of the market's perception of a company's fundamentals, and this perception is reflected in the chart's price patterns.
  • The movement of a stock's price is influenced by market sentiment towards the company. These movements occasionally exhibit distinct patterns that can serve as a basis for forecasting the subsequent price changes.
  • Price and volume are the only certainties within the market; all other factors are open to interpretation, manipulation, speculation, and emotional influence. My analyses are grounded in the realities presented by price and volume within the chart's price patterns.

 

 

Although my analysis is primarily grounded in Technical Analysis, I ensure to review certain critical aspects of a company prior to executing a trade. These include checking for any bankruptcy filings, announcements of acquisitions, and other significant factors. I seek stock trades that fulfill the following criteria:

  • The trade aligns with the predominant trend of the overall market or sector.
  • On rare occasions, I engage in counter-trend trades when the likelihood of success is significantly high.
  • The trade exhibits a high probability of success, as determined by my analysis.
  • The trade offers a favorable risk/reward ratio, signifying the possibility of substantial gains relative to potential losses in the event of a trade failure.
  • In a series of ten trades: six to seven are expected to succeed, one to two may yield exceptionally high returns, and three to four may not succeed.
  • The trade exhibits a high level of capital efficiency. This means I do not allocate all of my trading capital to a single trade or a couple of trades. Instead, I strive to utilize approximately 10-15% of my available capital for any given trade. This strategy differs from diversification.
  • I frequently purchase put or call options to enhance the capital efficiency of my trades.
  • My published selections include specific option contracts when they are deemed appropriate.
  • I meticulously monitor sector weighting and conscientiously limit overexposure to any particular sector in my trades.