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29
08/2012
www.tradersonline-mag.com
TRADERS´
TOOLS
After a new high a down-gap followed the next day and within the
following days the target was undercut considerably.
Source: www.elliottwaveforecaster.com
F6)
Target Area Reached and Undercut
every three candles. Not one of
the targets was reached though.
A reasonable use of the analysis
is only possible with a time frame
from 15 minutes to one hour.
There is only one or two
adjustments during one day. Figure
5 shows an intraday-prognosis for
the DAX, the targets of which are
at the area of 6260
points at the 21st or
the following day.
Correction wave 4 is
assumed. Starting
with the day of the
calculation the DAX
has a potential of 90
points down. The
prognosis was created
at 6350 points.
Below the charts
we see the Rate of Change
indicator; this is a part of the
indicator tool that can be bought.
It has already reached an extreme
area. Only if the indicator cools
down (leaving the extreme area)
there could be a movement in
the direction of the target area –
this is an additional prediction of
technical analysis.
In Figure 6 we see that after
the first increase the decrease
followed. The DAX started the
22nd June with a down-gap
to the target area and stayed
sideways. The following Monday
a further decrease followed and
another wave target was reached
and undercut. The expected
target of Figure 5 was exceeded
by more than 80 points.
Experienced Elliott-Wavers will
criticise the false calculations
in this example. It is assumed
that the correction wave 4 is
still in progress. But as the high
of wave 1 is already undercut,
the calculation is invalidated.
The rules say that this breach
disqualifies the calculation. But
we have shown you the picture
anyway. In the course of the day
the calculation started anew
and the shown breach led to a
removal of the calculation.
Conclusion
The software is solid but the use
of the charting and indicator tools
is not ideal, because some lines
are difficult to recognise. But
this was not the main reason to
develop this software. By means
of the database everybody should
be able to recognise target
areas based on the Elliott-Wave
analysis within the chart. This
is the strength of the program
that executes the wave-counting
simply and fast.
The beginner can use the
free EoD-version if he wants
support for the analysis of
individual stocks. But he should
concentrate on the use of target
prognosis as well as counting
and comparing it to the usual
technical analysis before
investing.
We discussed
some forecast-charts
in internet forums
and recognised these
problems. But you
can use this software
in addition to your
usual tools to see it
from a different angle.
Every stock can
be analysed with
the free Yahoo-data found in the
database of the internet provider.
We only had one week to use the
software intraday – you should
plan several weeks to get to know
the program and to determine
the quality of the forecasts. But
one thing is sure: Even though
the target areas are not always
reached during the day, the
direction was hit very well. There
were also no problems with the
automatic data feed from eSignal,
this can be recommended
unconditionally. But you have to
take your time to adjust the codes
of the stocks. The program can
be downloaded at http://www.
elliottwaveforecaster.com in the
End of Day-version.
By means of the
database everybody
should be able to
recognise target areas.