Good afternoon, everyone. Elliott wave principle is what I use to analyze and influence the trades I take in the market. I really believe that the market moves in patterns based on Elliott wave and Fibonacci ratios.
I have seen many times how the famous Elliot wave pattern is repeated in many cycle and to the point when do not miss even by a single point. we as trader tend to make human mistake and always believe we have the correct count , we as human always trying to go to the minimum time frame possible. Many times this pattern is visible and workable in those small frames sometimes not , sometimes created a illusion or idea to be a correction and then break as a impulse . Today , I will explain how many traders and good traders are always trying to pick a top or a bottom.
Picking as I call it is a illusion , many times we are waiting for a level and we believe that the top or bottom just to found out that the market pass by the level without any resistance , so what was wrong , where picking a bottom or top is a mistake . the best bottom or top is the one we all knows , is waiting for the top or bottom formed by its self , seeing five waves in the hourly chart and the when wave A and C overlapped , getting in favor of the trend or five waves .
I know if all fellow traders practices this theory they should be able to make more money and less painful days .I believe the human factor and greed sometimes tends to created those false illusion , so picking a top or bottom is easy , please do not do it , just wait for the market to show the top or bottom.