The basics of Elliott waves and the definition of.
Steps for Beginners
1. Start by adding the indicator fractals. Each minimum and maximum of Elliott waves will be denoted by fractals.
2. If you can't determine the waves yourself, start with how others do it:
- Elliott Wave Analysis from Forex Ltd
- Discussion of Elliott Waves on DailyFX
- Daily Trading Ideas about Elliott Waves
- Weekly analysis of Elliott waves
- We also found links to a few Russian sites:
- Elliott Wave Analysis from FinMarket
- Analysis of Elliott waves from FXClub
3. Set timeframe: for accuracy, use at least a 1-hour chart. The commonly used timeframes are 1-hour and daily timeframes. The daily chart will usually be the most accurate, and it will be easier for a beginner to use it.
4. Set Elliott Wave indicator or mark the waves manually.
5. Watch how the movement will unfold, and try to go in the direction of the wave movement.
6. The goal is to catch the following waves:
- Trade on wave 3 in the direction of the trend;
- Do not enter the market on wave 4; Trade on wave 5;
- Catch the end of wave 5 (usually wave 5 ends with a characteristic market divergence) and trade against the trend on ABC waves.
...This is where all the difficulties probably begin – many traders simply cannot figure out how to determine and maintain the correct number of Elliott waves.
There is no secret path for an easy start. For any beginner trading on Elliott waves, the best way to get started is to use the calculations performed by more experienced traders trading on Elliott waves, and, of course, read more books about trading on Elliott waves.