elliott wave - ampletrader.com · introduction elliott wave application was manufactured after a...

Elliott Wave

User Guide

AmpleTrader

Important Information

Copyright

Under the copyright laws, this publication may not be reproduced or transmitted in any form, electronic

or mechanical, including photocopying, recording, storing in an information retrieval system, or

translating, in whole or in part, without the prior written consent of AmpleTrader Systems.

Disclaimer regarding use of AmpleTrader System product

Trading stocks, mutual funds, futures, and options involves high risk including possible loss of

principal and other losses. Neither the software nor any demonstration of its operation should be

construed as a recommendation or an offer to buy or sell securities or security derivative products of

any kind.

Neither AmpleTrader’s, nor its employees and affiliates recommend any specific security for purchase or

sale, nor do they recommend any specific approach to investing in securities. AmpleTrader is not an

investment advisory service nor a registered investment advisor or broker/dealer.

No representation is being made that the methods presented will guarantee profits in trading. Past

performance, whether actual or indicated by historical systems testing, is no guarantee of future

performance or success. Information presented by AmpleTrader is from AmpleTrader sources and

believes are reliable. However, AmpleTrader, has not independently verified such information.

Please Watch this video to watch Elliott wave unfold before your eyes: https://www.youtube.com/watch?v=vljMWhbWJkU

Elliott Wave User Guide AmpleTrader.com

Introduction

Elliott Wave application was manufactured after a tough labor of two decades. Many acclaimed

researchers and engineers were involved in its genesis of conception. It included people with

different functional expertise working towards a common goal with simultaneous corporation and

firm performance. The product was tested and certified by renowned and worldwide acclaimed

economists. Using OmniTrader we have automated the ElliottWave application which also includes

severe changes so that users find it useful and convenient according to their preference. The idea was borrowed from the infamous Elliott Wave theory developed by Ralph Nelson Elliott in the

late 1920s. Elliott believed that stock markets, thought to behave in a somewhat chaotic manner, in fact

traded in repetitive cycles. By taking the time to figure out the wave count Mr. Elliott concluded that the

movement of the stock market can be accurately predicted. Elliott based part his work on the Dow

Theory, which also defines price movement in terms of waves, but Elliott discovered the fractal nature of

market action. This theory asserts that crowd behavior ebbs and flows in clear trends. Based on this ebb

and flow, Elliott identified a certain structure to price movements in the financial markets.

Elliott Rule:

There are 9 waves or points that are found, applying the Elliott Wave theory. These are as follows –

0, 1, 2, 3, 4, 5, A, B, C. There are two kinds of Elliott pattern:

1. Upward Wave Pattern: If the wave has started on ‘0’ or a “low pivot point” then that wave

pattern is called Upward pivot.

2. Downward Wave Pattern: If the wave ‘0’ has started on a “high pivot point” then that fall

wave or those continuous waves are called Downward pivot.

If the wave pattern is upward, then the system will highlight three long signals or 2, 4, and C

(highlighted by the color green) and if the signal is short then the indicator can be found on 5.


If the wave pattern is downward, the short signal will be on 2, 4, C and the long signal can be found

on 5.

But when the wave fails to continue applying the Elliott rule, the wave pattern discontinues and

again starts from ‘0’ (zero).


Accessing Elliott Wave

Elliott Wave is installed with OmniTrader and enabled for use with your active subscription.

Click on the Elliott Wave Setup file. It will directly connect you to a Welcome Page.

Click on Next>>License Agreement.


A new page will pop up>> Select the application version>> Enter your E-mail id>> The

CD key number will be generated by the server online.

Next a page showing the Destination Folder>>Next. (The file location cannot be changed)


Next comes the Installation page>>Click on Install.

Click on Finish.

Now run your OmniTrader and find Elliott Wave indicator and systems from Chart option. Elliott Wave User Guide AmpleTrader.com

Indicator

1. For Elliott Wave

In Chart option the user will find the indicator name Elliott Wave (ET). Select the indicator and go to

Properties where the user can find the Settings of the indicator.

1. Actual Sensitivity: It’s a value bar from 0.05 to 5.0. The user can select the value from

here and can get the wave chart base of this values. One can even change the pivot point

of the wave. 2. Decision Sensitivity: It’s same as Actual Sensitivity, the user can get another wave basis

of decision sensitivity. 3. Plot Pivot Line: It’s a check box, if the user checked it, then one can get the Pivot Line

drawn from upward and downward. If not checked, the user would not get it. 4. Plot Text: It’s a check box, if the user checked it, then one can get the text of wave like

0,1,2,3,4,5, A, B, C. If not checked, one would not get it. 5. Green PP Line: It’s a check box, if the user checked it then one can get the Elliott Wave

line. If not checked, one would not it. 6. Decision Sensitivity Off: It’s a check box, if the user checked it then one can get wave

basis of decision sensitivity. If not checked, one would not get it.

7. Sensitivity Line: It’s a check box, if the user checked it, then one can get the line drawn

in every sensitivity changes. If not checked, one would not get it. 8. Line: In Line Settings, the user gets four lines. High Pivot, Low Pivot, Wave Line, Test

Line. 9. Color: The user can change the line color from here. 10. Width: The user can change the width of lines from here also the types of lines.


Systems:

There are five systems

1. Elliott Pattern 2(ET-2) 2. Elliott Pattern 4(ET-4) 3. Elliott Pattern 5(ET-5) 4. Elliott Pattern C(ET-C) 5. Elliott Pattern Full(ET-Full)

In Chart option, the user will find the System name Elliott Pattern 2(ET-2), Elliott Pattern 4(ET-4),

Elliott Pattern 5(ET-5), Elliott Pattern C(ET-C), Elliott Pattern Full(ET-Full)


Select the System and go to Properties and one can find the Settings of the System

In Properties, the user gets Actual Sensitivity and Decision Sensitivity.

11. Actual Sensitivity: It’s a value bar from 0.05 to 5.0. The user can select the value from

here and one can get the signal base of these values. The user can select the value as same

as indicator then one gets the buy signal as green and sale signal as red. 12. Decision Sensitivity: It’s same as Actual Sensitivity, the user can get another signal basis

of decision sensitivity.

Elliott Pattern 2(ET-2): In this system, the user gets the signal only for 0>2 wave. Elliott Pattern 4(ET-4): In this system, the user gets the signal only for 0>4 wave. Elliott Pattern 5(ET-5): In this system, the user gets the signal only for 0>5 wave. Elliott Pattern C(ET-C): In this system, the user gets the signal only for 0>C wave. Elliott Pattern Full(ET-Full): In this system, the user gets the signal for 2,4,5,C wave.


Conclusion

Elliott was able to analyze markets in greater depth, identifying the specific characteristics of wave

patterns and making detailed market predictions based on the patterns.

Without a doubt, the greatest drawback of using Elliott Wave theory (EWT), and the reason most

traders avoid it, is its high degree of subjectivity. Even the most experienced Elliott experts can have

trouble agreeing on wave counts and forecasts on the same issue, index or commodity. Where there

is subjectivity, there is uncertainty.

Apply the rules for the first count attempt and then the guidelines on the second. Eliminating bogus

counts paves the way to a more accurate count. Even with accurate counts, chartists will still need to

re-evaluate and adjust counts as new price information emerges. It is just the nature of the beast.

At the end of it all Elliot Wave does a good job giving users an opportunity to participate in market

related activities so easily and with so much convenience.

**Customers are hereby notified that any kind of money loss or expenses suffered by using

AmpleTrader, then any third party cannot claim our application. All the transaction is taken

at their own risk. If you have any doubts as to the merits of an investment, you should seek

advice from an independent financial advisor.


elliott wave - ampletrader.com · introduction elliott wave application was manufactured after a...

Documents