• 18 mins Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 3 hours Airbnb In Acquisition Mode Ahead Of IPO
  • 6 hours Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 8 hours Champagne Sales Slow As European Economic Worries Grow Louder
  • 1 day Putin Signs “Digital Iron Curtain” Into Law
  • 1 day Russian Metals Magnate Sues U.S. Over Sanctions
  • 1 day Tesla Looks To Jump Into Indian Market
  • 1 day Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 2 days Homeowners Experiment With Risky New Investment Trend
  • 2 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 2 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 2 days Ford CEO Gets Raise After Massive Layoff Round
  • 3 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 3 days Where To Look As Gold Miners Inch Higher
  • 4 days Google Faces Billions In Fines From European Regulators
  • 4 days The Energy Industry Has A Millennial Problem
  • 5 days Russian Banks Scramble For Sanction Loopholes
  • 5 days Gold ETFs Take A Hit After Four-Month Run
  • 6 days European Union Takes Aim At Ten New Tax Havens
  • 6 days Goldman Defends Trillion-Dollar Corporate Buyback Spree
Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

  1. Home
  2. Markets
  3. Other

The State of the Trend

In his article about the use of moving averages for improving your wave pattern identification skills, Jeffrey Kennedy shows how effective this simple tool can be in identifying Elliott waves. This is precisely the kind of out-of-the-box thinking that inspired the development of OT Fibonacci.

The whole purpose of the app is to assist traders in their EW count and classification. This is done via a couple of simple and intuitive tools which, as an added bonus, are automatically applied to the security and timeframe of your choice.

Let's use the SPY two-year weekly chart as an example. Looking at the price line and coming up with a clear wave count could prove challenging for experienced and novice ellioticians alike. As often is the case with live examples, everybody is entitled to their own count, and I'm not going to mess with any wave labeling. Once the trend indicator is added (blue line in top chart panel), however, it becomes obvious, even to the naked eye, that the index has completed either two or three waves up since the October '11 swing low. That's the benefit of eliminating the random noise from daily and weekly price fluctuations. In addition, you also get an idea of where price is most likely headed in the near term:

SPY

The wave count is further clarified by the Swing indicator in the bottom panel, which identifies three up swings (green lines), separated by three corrective waves (short sequences of alternating red and green lines). In other words, the Swing indicator not only helps with the wave count, but assists in determining the character of the wave (impulsive [motive] or corrective) as well.

An integral part of EW analysis is the application of Fibonacci numbers and ratios, which are included in the app. OT Fibonacci automatically selects the date and price of the swing high/low for the selected time period and applies all the relevant calendar and price extensions and retracements. It even comes with a section on Lucas and Prime numbers.

In summary, if you're looking for unbiased assistance with your wave count, help is just a tap away.

 

Back to homepage

Leave a comment

Leave a comment