monday , page-16

EW is a pain. But extremely useful, I have been implementing it into my trading strategy for a while. If you get fancy with it, you will lose sight. It's a pre-emptive mechanism. The only way I know to keep it simple & real is to validate counter & impulse moves by using fibonacci. I use both in tandem. If we are in a genuine five wave more or counter a-b-c move. It is difficult to determine which most of the times. Elliot Wave International is claiming a large ABC is complete and new lows are beckoning is a view I don't share, mainly because to me at least we are trading in a genuine five wave bull move despite being counter trend.

If you can eye-ball wave 1 and then wave 2 retracement to 50% or 61.8% you won't be able to identify the large wave 3 impulse wave until the the high of wave one is broken. When the high of Wave 1 is broken; I will implement a fibonacci extention usually 1.618 to identify the top of wave three. Sure, impulse waves do require 5-steps to complete an impulse wave and counter waves need an a-b-c. But I do not concern too much about that, I like to keep it simple.
Then measuring the counter trend from the end of wave three is very difficult and largely guess work, but fibonacci does indeed help to identify potential retracement targets. It is largely subjective, but I try to validate each and every wave with some backing, in this case fibonacci or the geometrical natural square.