Robert Miner, Dynamic Traders Group, Inc. Part 1
This tutorial begins a series of how to apply Elliott wave analysis for
practical trading strategies. All subscribers have some Elliott wave
background from my Dynamic Trading book. Because that book goes
through the pattern structures in detail, there is no need to repeat that
information in this tutorial series.
It is assumed for this series, that subscribers are familiar with Chapter
3 of Dynamic Trading and how the most frequent pattern subdivide.
Besides teaching you the practical application of Elliott wave trading
strategies, an objective of this series will also be to dispel some Elliott
wave myths and bad practices fostered by Elliott wave academics.
Everything taught in this tutorial series will apply to any actively traded
market included futures, stocks, indexes and mutual funds and any time
frame whether five-minute or monthly.
From your study of Elliott wave in Chapter 3 of Dynamic Trading, you
should be familiar with these concepts.
Impulse Trend – Usually unfolds in five-waves. Five-wave impulse
trends are usually made in the direction of the larger degree trend.
Counter-Trend – Usually unfolds in three-waves. A counter-trend is a
correction to the prior impulse trend.
Waves of Similar Degree – Also called swings of similar degree.
Waves of similar degree represent the subdivisions that make up a
completed structure. In an impulse trend, waves one-five are the waves of
similar degree. The subdivisions of each wave are waves of a smaller
degree.
Subdivisions of a Wave – Any given wave may subdivide into smaller
degree waves to complete the structure of the wave. For instance, Wave-1
of a five-wave impulse trend usually subdivides into five waves of lesser
degree. You should be familiar with how each wave of a trend or countertrend
usually subdivides.
Multiple Time Frames - Multiple Time Frames has become a buzzphrase
recently. It is nothing more than R.N. Elliott’s approach to
considering multiple degrees of wave structure. When the subdivisions of
a wave are complete, the larger degree wave is compelte.
Read next >>> Trend or Counter-Trend?
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