Using Elliott Wave Analysis For Objective Decision Making
|A common question I am often asked is:
How did you decide to use “Elliott Wave” as your primary technical indicator rather than some other method such as classical chart patterns or other indicators?
I adopted Elliott Wave after looking at several approaches and seeing analysis from other FX traders like Andrew Baptiste and Robert Balen….it simply made sense to me.
The other distinguishing feature I like is being able to evaluate ‘probable’ future moves in prices and objectively determine stops and profit targets. Classic charting does not allow that to the extent Elliott Wave does in my experience.
That said, I do look at classic charting techniques and indicators in conjunction with the Elliott Wave analysis.
- Stochastics
- RSI
- Trendlines
- Fibonacci
- DeMark
Quantitative measures
Additionally, and if you’ve heard this before it bears repeating: regardless of the analysis technique you choose you, stay focused on just a handful of markets/instruments. I know it’s tempting to run scans and look for the ‘trades of the day’….but that is often a waste of time, at best. Novice and seasoned traders alike can get into trouble when you try to follow too many markets or look for opportunities outside your normal trading vehicles.
Using Elliott Wave and going deep on a handful of instruments has helped to grow my trading accounts and my portfolio. I encourage you to follow your interests and develop a personal approach and THEN STICK TO IT.
Never stop learning!
Dave
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