Working of the Elliott Wave Theory in the Trading Arena

by Traders Gurukul Stock Market Training Institute

Elliot Wave Theory training offers eleven patterns along with specific rules and guidelines requiring strict following for locating and marking the patterns on the chart. It has been relatively difficult to observe those patterns with the naked eyes. You would be required to use your tools for measuring every move and marking the numbers and letters accordingly.

You could come across a wide number of patterns and combinations that could form next. Therefore, it would be a hit and miss when predicting the next move. The best part about the Elliot Wave theory has been that it would tell you how much you should take the risk. Rest assured that your risk would b relatively clear before you enter the trade. You would be able to know about the levels beyond which your patterns become invalid. Therefore, you could keep tight stop losses at those levels. In the event you get it wrong, the chances of which would be higher than you get it right, you could adjust your markings quickly and re-enter.

At any time, there could be two or more possible patterns. Therefore, you would be required to remain updated on all the possible outcomes and be relatively quick to adapt to changes. You would have to fix the stop losses before deciding the profit target. Where the pattern becomes invalid, it would remove the stress from trading, as you would not have to change your SL when the trade moves against you. Rest assured that you would be required to know when to get out. It would not be wrong to suggest that no other tool would provide you with such precision.

The overall success rate in using Elliot Wave theory has been deemed average. Rest assured that you could not be sure of the occurrence until it has been completed and the next pattern begins to form. When you follow Elliot Wave theory, you could not be comfortable with your markings. You should have a back-up plan ready if it does not work out.

It has been deemed the best tool available, which tells you instantly when you were wrong. It would be in your best interest to keep tracking the progress along with adapting to the changes. It needs a lot of work and patience. As a result, it is not for everyone. Only a few traders or investors beginning to learn Elliot Wave theory would stick through it. The rest would consider and call it a fraud. Most traders or investors would have an on and off relation with Elliot Wave theory most of the time.

However, the traders and investors would come back to use Elliot Wave theory based on the risk and reward involved in it. Rest assured that no other tool would predict the move or turn with such precision.

It would not be wrong to suggest that the Elliot Wave theory training is not for everyone looking forward to making the most of trading or investing. The theory would test your logical patience and reasoning along with the reward being worth the time and effort.

Sponsor Ads

About Traders Gurukul Advanced   Stock Market Training Institute

45 connections, 0 recommendations, 294 honor points.
Joined APSense since, July 9th, 2020, From Bangalore, India.

Created on Mar 26th 2021 01:48. Viewed 264 times.


No comment, be the first to comment.
Please sign in before you comment.