Elliott Waves in PFOREX Assist
Eighty Second session – PFOREX Assist Tutorial
Welcome back to Forex professional training.
In this session we will review;
- The available Elliott Waves pattern in PFOREX Assist
- Trading examples of Elliott Waves pattern
Available Elliott Waves pattern types in PFOREX Assist
The strategies from Elliott Waves that we will review are as follows;
- MACD Phase
- MACD Line
- RSI
- Stochastic
- Turning Point
- Candlestick
The Elliott Waves theory represents two types of strategies; Signals & Analysis. All signals and analysis are generated after the 5th wave is formed to specify the reversal spot. Profound and complete video and text courses are available in education section, so it is utterly recommended that traders study thoroughly before trading by this pattern.
The Elliott Waves with MACD Phase as well as Elliot Waves with Turning Point strategies generate analysis and the rest of strategies developed by Elliott Waves generate trading signals.
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Trading with Elliott Waves strategies
As mentioned, among 6 strategies by Elliott Waves there four types that delivers the trading signals while the others generate technical analysis. And now we will check some examples of provided strategies.
MACD Phase type
The 5th wave of the Elliott Waves pattern is detected by the use of MACD oscillator. The confirmation of reversal spot is provided by MACD phase shift.
Bullish Trend: MACD Phase shifts to the positive state when MACD Bars cross the zero axis toward top.
Bearish Trend: MACD Phase shifts to the negative state when MACD Bars pass the zero axis toward bottom.
This strategy also can be applied to determine the convenient Take Profit prices as well as confirmations for Double Top & Bottom patterns or other patterns that specify the reversal spots on a trend.
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This example shows a bearish trend in which the 5th wave and the reversal spot are detected by the MACD oscillator.
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In the next example, on bullish trend of AUDUSD symbol, MACD oscillator specifies the 5th wave and the reversal spot on which price would bounce back toward bottom.
Turning Point type
In this strategy, the 5th wave and reversal spot are detected by a powerful reversal candlestick pattern with the help of Divergence/Convergence.
Bullish trend: Bearish candlestick + Convergence
Bearish trend: Bullish Candlestick + Divergence
This strategy can be applied with other confirmations such as overbought/oversold conditions and Hidden Divergence for higher success rate of trades.
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As we can see in this example, on a bullish trend of EURAUD, the waves are formed until the reversal spot on the 5th wave is determined by the reversal bearish candlestick pattern and divergence condition.
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On the next example, The Elliott Waves pattern is formed on a bearish trend and the reversal spot, with the help of reversal bullish candle pattern and convergence condition, on the 5th wave shows a future bullish trend.
MACD Line type
The reversal spot on the 5th wave can be detected swiftly and appropriately with the help of MACD line. Now let’s check the specifications of this strategy:
- Market State: Trend market
- Market Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price
- Buy Order: Line crosses the bars toward down on negative phase + convergence
- Sell Order: Line crosses the bars toward up on positive phase + divergence
- Stop Loss
- Buy Order: Below the last valley
- Sell Order: Over the last peak
Take Profit Price
- Buy Order: Equal to or double the height of the area between Entry & Stop Loss, over the entry price
- Sell Order: Equal to or double the height of the area between Entry & Stop Loss, below the entry price
- Confirmations: Divergence/Convergence, Overbought/Oversold and reversal candlestick pattern
And now we will check some examples of each pattern.
On the bullish trend with consecutive waves, an Elliott Waves pattern is formed in which reversal spot on the 5th wave was formed and the Entry Price was determined after the MACD line passed the bars toward top. The signal would become active after price passes the Entry toward bottom.
The Stop Loss price is set over the 5th wave peak. The divergence on the 5th wave shows the future bearish trend. The 1st Take Profit price is equal to the distance between Entry and Stop Loss, below the Entry Price. The 2nd Take Profit price is double of that distance.
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In next example, after Elliott Waves pattern is formed on bearish trend, The MACD line crossed the bars toward bottom to specify the Entry Price for the future upward trend. The convergence confirms the bullish trend.
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RSI type
In this type, the reversal future trend on the 5th wave is confirmed by overbought/oversold condition by RSI as well as other confirmations like divergence/convergence. Now let’s check the specifications of this strategy:
- Market State: Trend market
- Market Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price
- Buy Order: RSI line crosses level 30 toward top
- Sell Order: RSI line crosses level 70 toward bottom
- Stop Loss
- Buy Order: Below the candlestick on the reversal spot of 5th wave
- Sell Order: Over the candlestick on the reversal spot of 5th wave
Take Profit Price
- Buy Order: Equal to or double the length of the last candlestick, over the entry price
- Sell Order: Equal to or double the length of the last candlestick, below the entry price
- Confirmations: Hidden Divergence and Reversal Candlestick pattern
And now we will check some examples of each pattern.
On the Gold symbol, in M15 time frame, an Elliott Waves pattern is formed on bullish trend. The 5th Wave reversal spot is formed while RSI line was in overbought area. The Entry price of this pattern is determined just after RSI line passed the Level 70 toward bottom. On this example, an engulfing candlestick pattern confirms the bearish future trend as well.
Considering the other confirmations, fundamental analysis and other market trend speculations, the trader can select 1st or 2nd Take Profit prices.
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The next example shows a bearish trend in which 5th wave of Elliott Waves pattern is formed when market price is in oversold condition. After RSI line crossed the Level 30, The Entry Price was determined. The speculated bullish trend is confirmed by the Inverted Hammer candlestick pattern as well as Convergence. The Stop Loss price is just below the 5th Wave valley while Take Profit prices are specified by the length of last candlestick pattern.
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Stochastic type
Like RSI type, the reversal future trend on the 5th wave is confirmed by overbought/oversold from stochastic oscillator and other confirmations. Now let’s check the specifications of this strategy:
- Market State: Trend market
- Market Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price
- Buy Order: Stochastic line crosses level 20 toward top
- Sell Order: Stochastic line crosses level 80 toward bottom
- Stop Loss
- Buy Order: Below the candlestick on the reversal spot of 5th wave
- Sell Order: Over the candlestick on the reversal spot of 5th wave
Take Profit Price
- Buy Order: Equal to or double the length of the last candlestick, over the entry price
- Sell Order: Equal to or double the length of the last candlestick, below the entry price
- Confirmations: Hidden Divergence and Reversal Candlestick pattern in addition to Divergence/Convergence
And now we will check some examples of each pattern.
On bearish trend, the 5th wave was formed while the stochastic line was in oversold area. After stochastic line crossed the Level 20 toward top then Entry price is specified. The convergence conditions in addition to Engulfing candle confirm future bullish trend.
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In the other example, Elliott Waves pattern was formed on AUDUSD bullish trend. The last peak on 5th wave was formed while stochastic line shows overbought condition. The Entry price is determined after stochastic line crossed the Level 80 toward down. In this example, divergence conditions as well as Engulfing candle pattern confirm the bearish future trend.
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Candlestick type
The powerful reversal candlestick pattern on the 5th wave of Elliott Wave determines the reversal spot. Now let’s check the specifications of this strategy:
- Market State: Trend market
- Market Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price
- Buy Order: Powerful reversal bullish candlestick pattern
- Sell Order: Powerful reversal bearish candlestick pattern
- Stop Loss
- Buy Order: Below the candlestick on the reversal spot of 5th wave
- Sell Order: Over the candlestick on the reversal spot of 5th wave
Take Profit Price
- Buy Order: Equal to or double the length of the last candlestick, over the entry price
- Sell Order: Equal to or double the length of the last candlestick, below the entry price
- Confirmations: Hidden Divergence and overbought/oversold conditions in addition to Divergence/Convergence
And now we will check some examples of each pattern.
On the EURJPY symbol, the reversal spot of 5th wave from Elliott Waves pattern is detected after the powerful reversal candlestick pattern. The Entry and Exit prices are determined by this powerful candle pattern.
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On the next example, powerful Engulfing candlestick pattern is formed on the 5th wave and shows the reversal spot for the future bearish trend.
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Notices
Based on the quality rate of generated signal as well as the confirmation, traders can use the strategies to gain information about probable future price movement.
You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.
That concludes this session, until next time and another session, take care.