kmalex, regards post 142. Your M1 data suggestion worked ... thank you.
I was therefore able to scroll back to the area where you had your question about the HH HL LL LH count.
Following our rules for HH HL LL LH there is a reversal inside the ellipse.
In Elliott Wave Counting that area is a wave four, always an area of confusion, whipsaws and false signals. The Alligator
(Not shown on the chart) closes up there and clear trends do not happen.
The 5 34 5 MACD is also called the Elliott Wave oscillator and it helps to identify wave four.
The highest or (lowest level of the MACD is usually followed by a small divergence. This is shown in red on the chart.
This divergence marks the end of the strongest move (Wave three.) The MACD then heads towards zero, usually touching
or penetrating the zero level to confirm a wave four. (In this example it did not get to zero but it usually does at least go down that far.)
A wave five impulse follows but it is mostly weaker than the previous wave three impulse wave. A larger divergence (black) is the 3, 4, 5
Elliott Wave divergence.
Now I really hoped to avoid detailed Elliott Wave stuff here. So let's not worry about that too much and just focus on the
MACD and the brick colors.
When the MACD is above zero, we only want to take long, impulse trades, preferably with green bricks. If we know the HH HL
LL LH count, so much the better. If we have a confused area, check the MACD and see if it is a counter trend /correction and
consider taking entries in the direction of the trend only or just stay out until it becomes more clear.
Some people say that an entry at the third fractal (that would be the LL, Wick Entry, just above the "four" label) is a good place to enter.
If you can keep all of that in you mind and act on it, then you are really good.
You can see how the price finally broke above the LH at green line, the right edge of the ellipse, and resumed the HH HL count until it reversed
again below the last HL.
I know this is complex to explain and maybe a lot of what I have explained here is not necessary. The Elliott Trader in me gets loose once in a while.
Anyhow if you can be aware that the MACD peaks, diverges a bit, then heads for zero that is the area to be cautious.
Knowing why is not really necessary. If you like to know why, then I refer you to Bill Williams books on Trading Chaos.
*********************************************************************************************
ducka regards post 159. I cant put up a Renko gold chart as the markets are closed.
I don't follow gold as much as I should, given that I work with it every day. I stocked up a long time ago
and I am glad that I did.
The last LH is correctly identified. You can trade using the MACD and keep an eye on that LH.
You are correct thinking that the LL label is not verified until price breaks below its fractal.
Knowing that, you have a range between the LH an the potential LL to work in. If price moves past
either of those there is a trend change.
Watch the DMTL for any breaks. Price is in the tight end of a triangle and will break out soon.
Check the H4 gold chart Alligator. Very strong move under way. Try a HH HL LL LH analysis
on the daily gold chart and see what is happening.
The problem you will have to solve is how do the Renko Bricks and the daily chart relate to each other.
Just taking long trades may be the solution.
Also look at the weekly gold chart and see what it is saying.
I was therefore able to scroll back to the area where you had your question about the HH HL LL LH count.
Following our rules for HH HL LL LH there is a reversal inside the ellipse.
In Elliott Wave Counting that area is a wave four, always an area of confusion, whipsaws and false signals. The Alligator
(Not shown on the chart) closes up there and clear trends do not happen.
The 5 34 5 MACD is also called the Elliott Wave oscillator and it helps to identify wave four.
The highest or (lowest level of the MACD is usually followed by a small divergence. This is shown in red on the chart.
This divergence marks the end of the strongest move (Wave three.) The MACD then heads towards zero, usually touching
or penetrating the zero level to confirm a wave four. (In this example it did not get to zero but it usually does at least go down that far.)
A wave five impulse follows but it is mostly weaker than the previous wave three impulse wave. A larger divergence (black) is the 3, 4, 5
Elliott Wave divergence.
Now I really hoped to avoid detailed Elliott Wave stuff here. So let's not worry about that too much and just focus on the
MACD and the brick colors.
When the MACD is above zero, we only want to take long, impulse trades, preferably with green bricks. If we know the HH HL
LL LH count, so much the better. If we have a confused area, check the MACD and see if it is a counter trend /correction and
consider taking entries in the direction of the trend only or just stay out until it becomes more clear.
Some people say that an entry at the third fractal (that would be the LL, Wick Entry, just above the "four" label) is a good place to enter.
If you can keep all of that in you mind and act on it, then you are really good.
You can see how the price finally broke above the LH at green line, the right edge of the ellipse, and resumed the HH HL count until it reversed
again below the last HL.
I know this is complex to explain and maybe a lot of what I have explained here is not necessary. The Elliott Trader in me gets loose once in a while.
Anyhow if you can be aware that the MACD peaks, diverges a bit, then heads for zero that is the area to be cautious.
Knowing why is not really necessary. If you like to know why, then I refer you to Bill Williams books on Trading Chaos.
*********************************************************************************************
ducka regards post 159. I cant put up a Renko gold chart as the markets are closed.
I don't follow gold as much as I should, given that I work with it every day. I stocked up a long time ago
and I am glad that I did.
The last LH is correctly identified. You can trade using the MACD and keep an eye on that LH.
You are correct thinking that the LL label is not verified until price breaks below its fractal.
Knowing that, you have a range between the LH an the potential LL to work in. If price moves past
either of those there is a trend change.
Watch the DMTL for any breaks. Price is in the tight end of a triangle and will break out soon.
Check the H4 gold chart Alligator. Very strong move under way. Try a HH HL LL LH analysis
on the daily gold chart and see what is happening.
The problem you will have to solve is how do the Renko Bricks and the daily chart relate to each other.
Just taking long trades may be the solution.
Also look at the weekly gold chart and see what it is saying.