Sunday, September 11, 2011

Trading Plan: Elliot Osciallator helps in sideways days to find the best entries



Notice its important to wait for a divergence move (indicator making a higher low and then continue trading up) if we are in a more bearish market (no blue oscillator):



When the elliot osciallator is negative its ok to buy a positive bar that is at a prior support,
vise versa its OK to sell a negative bar at prior resistance when the elliot osciallator is positive.

End of trends can be clearly seen in advance as the osciallator will display a divergence (indicator value is lower than on the prior swing high, even if price is higher)

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