The Elliott Wave, that is (yuk, yuk). Anyway, I took my fourth Elliott Wave trade today. Again I traded 6B, which seemed clearest of all my charts when I sat down at my desk today. I think I made the perfect entry, to be honest. Unlike my previous trades for wave 5, this time I went for wave 3, and I think that’s pretty much what every elliottician wants to do. Sadly, I totally flubbed the exit taking profits well before I originally intended. As a reformed scalper, sitting on 25 ticks of profit was just too much for me to bear!
The count was from the 30-minute chart, so I intended to try to sit around for a much larger move. I’ll have to improve in that area. A big part of it is that I’m still very unsure of my wave counting abilities. If my count is correct, there is much more upside ahead on 6B. If it’s incorrect, then I got out at about the right time after all. I’ll be watching, and hopefully learning.
Looks like you made the right decision to get out.
“As a reformed scalper”… Do you not scalp anymore, or is it just a byproduct of working with Elliot Waves and their incompatibility with scalping?
As far as exit critique, I would have expected at least a bounce off of that recent swing high near 1.5940 on your chart, so your exit was a good place to take at least a partial. It seems to be important to be okay with leaving money on the table, at least psychologically. I imagine you are beyond that point, unlike myself, and you might be looking to get the maximum potential out of your EW setups. Just a thought or two.
Thanks all.
If my count was correct, there is much more upside to come, though maybe not all of it will come today. That’s another tricky thing, if I don’t want to hold anything overnight. I didn’t share my count in this post, but team members know what I mean.
Pro, I haven’t scalped much at all since starting the team. I wanted to display an easier pace of trading, and it turns out that I’m really liking it. I didn’t expect that, but I do. The risk:reward is so much better, for one thing.
I’m mainly disappointed that I got out when it felt good rather than waiting until I could try to project an elliott-style wave 5 target. But, all in good time, I guess. All in good time.
Do I have to join your trading team to get a copy of your price proxy?
michael, if that’s the only reason you’d be joining then I really don’t want you to. It’s not about getting your hands on indicators. It’s about learning and sharing approaches to technical analysis.
Thanks Richard for all your work on this site. And for your ‘legacy’ at EOT. I have been sim trading for a few years and have read many many blogs including this one, books etc. I have tried using some of the indicators posted on blogs, with very mixed results. I have tried to create a ‘poor mans’ version of EOT’s indicators and got similar results (70% win rate, similar money management). But I met a mentor recently who was looking for some help programming, finding brokers, setting up his hardware. He trades price action only and my account balance is growing in sim. This guy was trained by the best. A Chicago pit trader. Whats scary guys is his ability to ’see’ where buyers and sellers are in real time and his entries are scalpel precise. What shocked me the most was that ..wait for it…I ABANDONED ALL my indicators. I just have price candles on various timeframes. I know thats hard to believe, but you have to SEE it to understand. I cant explain it. Its kind of surreal. Its like I have been ‘liberated’ from indicators and finally SEE price rather than just look at it.
I agree. It’s a little like when I was first freed from the Matrix. At first I was just THINKING I was fast enough instead of BELIEVING I was. I can’t explain it. This allowed me to SEE the Matrix rather than just look at it.
Mr. Anderson,
Did you know that the first futures market was designed to be a perfect trader playground? Where none suffered, where everyone would be happy. It was a disaster. No one would accept the program. Entire crops were lost. Some believed we lacked the programming language to describe your futures market. But I believe that, as a species, daytraders define their reality through suffering and misery.
You disgust me, Mr. Anderson.
LOL Indeed Neo. Indeed. To take your pop-movie reference further…
You need to have the Neuralyzer from M.I.B. go ZAP and wipe out all memories of indicators.
Heres hoping your slate is clean.
Jungian