Trading Elliott Waves Using A Top-Down Approach by Mircea Dologa, MD, CTA
When applying Elliott waves to your charts, one of the challenges is to know which trend to use. Here is an approach that could help you do just that.
Most novice traders may not be aware of the importance of identifying the origin of a trend on the timeframe they are using. The top-down Elliott wave approach is one of the best strategic tools when practicing Elliott wave trading.
There are many advantages of using this top-down approach. The easiest to understand would be never trade against the trend. But which trend? Is it the ongoing trend on the operational timeframe, or is it the dominant trend, which is situated on a higher timeframe? Can you rely on upper timeframes like monthly, weekly, daily, and hourly to better understand the kinematics of the market flow on the 15-minute chart ...