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The Elliott Wave Commentary

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Strategic Command and Control

Mon, Jun 2 2008, 07:24 GMT
by Joseph Russo

Elliott Wave Technology

Traders Quandary in Finding a Consistent and Accurate Edge:

When considering the implied benefits of obtaining exclusive-access to a self-proclaimed, highly accurate charting service, (of which we are one) how is one to make heads or tails in turning the professed profit-packed price-charts into an actionable trading plan?

Although we receive tons of regular praise for our exemplary charting and forecasting acumen, a small but relevant percentage of users share that despite such excellence, they could not come up with an effective strategy to take advantage of our incredibly accurate price-chart landscapes.

We suspect the primary reason for such feedback is that this group of participants does not instinctively know how to apply the explicit mapping information displayed on each of our price charts. The missing ingredient for this contingent of traders is the challenge of conceptualizing and implementing tactical strategies that will align with one or more of our charts noted prospects.

As in the marketplace, and adding to this challenge, our charts point out all of the natural conflict inherent among the various strategies actively engaged in open trade. One strategy may be actively seeking to bullishly scalp 10-lots-long a defined trade-trigger targeting 10-S&P points in the next several HOURS, while another will be concurrently flat the same, and bearishly preparing to execute a counterintuitive swing trade strategy, which seeks to capture anywhere from 20-50-S&P points over the next several DAYS.

Once one grasps the logic, simplicity, and power of our charting protocol, they will find that our blended-approach to charting future price-movement is very trader-friendly, strategy specific, and designed to serve without bias, a wide variety of proven trading disciplines across all time horizons.

Case in Point:

For example, back on Friday 16-May, counter-trend swing-trade strategies were on alert to deploy specific criteria in electing short positions against a forever-rising S&P since the March lows. At the same time, very short-term momentum traders employing a directional trade-trigger strategy, had the boundary lines and projected point-values to speculate on aggressive long positions from 1425 seeking a quick 10-pts of upside profits.

Below, we illustrate the immediate outcome to both strategies in the following sessions chart on 19-May, which shows our short-term bullish momentum trader quite pleased with his or her pre-planned 10-pts of profit. In addition, we quantified confirmation of short-entry for the bearish counter-trend swing- trade strategy, in which sell-probes elected at 1429. Surely, one with a great deal of experience and versatility could have made both of these trades however, it is likely that most simply focused and aligned their orders with one specific strategy or the other. One bullish, one bearish, and both successful, containing all of the essential information to execute plans well in advance, and all on the same price chart.

We also wish to direct your attention to the array of downside price-targets, and point-values already present on Monday’s chart. Furthermore, we had also postulated that a small degree –c- wave decline was in progress, and provided a downside price projection-window for its terminal designated as wave “a” at one larger degree. Granted, though we have cleaned up the archived original to place special focus upon these two specific examples, the uncut chart displayed the all-of the precise information highlighted below.

• Download full The Elliot Wave Commentary with charts

Published on  Mon, Jun 2 2008, 07:34 GMT