Elliott Waves: How High Is High? Part 2 by Mircea Dologa, MD, CTA
In this second of two parts, we look at some trading techniques that could result in higher-probability trades with lower risk than those suggested by some of the classic trading techniques.
I will describe a series of techniques I consider state-of-the-art technical tools that are practiced every day by some professional traders. The build-up of the two-dimensional chart space (the Cartesian space) is one of the tools that can assist the trader in a precise and efficient way. In this article, Ill explain how.
In part 1 last month, you saw how the best and least-difficult profits can be achieved by trading the impulsive waves, which may belong to an impulsive pattern or a corrective one. When we think of impulsive or corrective waves, we think of the W3-wave and C-wave, and to a lesser degree, W1-, W5-, and A-waves. Experienced traders are capable of trading corrective waves because the techniques are more difficult to understand and the behavior of these waves is more dangerous, implicating more risk and more cumbersome money management ...