charts 1

[malvado xetra]

ok. after all the reviews I have received because of not to post charts. here they are to explain why I said market was exhausted 2 weeks ago and, a correction was needed. and, why said last thursday that the correction was finished. there are a lot of graphics so I have to post more than one thread. hope you enjoy them and have a better feeling of me. the thing is that my analysis of the market is quite general and deep and to post a lot of charts to explain my conclusion is a hard work.

I attache the first kit of charts explaning the exhausted markets of past weeks needing a correction

[walterw]

Malvado : Now I start to see your technical edge... I see you do Elliot, have you done elliot on smaller time frames ?, always been curios if a scalper can eventually use elliot... good stuf, makes sense, please keep adding its good for you, its good for us.. I dont know how many ellioticians we have here at TL, so I encourage you to take the lead on this great topic... cheers Walter.

[malvado xetra]

hi walter, Im happy you see now how I work.

basing the explanation on your momentum, non-momentum analysis I have read just a minute ago. I would tell you that Im allways an ellottician. when we are in momentum we are in an impulse elliott wave so I am swinger. when we are in non-momentum we are in a correction wave so market is nervious to settle a trend and I am a scalper. elliott work in every time scale but elliott, under my study, is not enough to trade on its own. elliott is very good to know if we are on trend or not. very good to know how long your position can be hold and very good to know when a correction can be start finishing or a strong trend is getting to its end. but I combine elliott with other analysis like volume, support-resistance, 60 minutes candles, ticks and 15 minutes candles to exactly know when to open a position.

when I scalp in non-momentum times I use 15 and 60 minutes candles combined with 60 minutes bars volume, tape reading and big support resistance.

now I am not in my office so I dont have my computer trading with me. If you want, tomorrow I will post you an example of scalping based on what happend last friday using 15 minutes and tick charts. how I waited to be sure that the correction was finished and take advantage of the new upward move making a couple of scalps. from tomorrow, in my opinion a new upward cycle has started so, we have to wait to see this first subwave ending, see how a next correction can come (2nd subwave) and then, when 2nd subwave has finished I think, a swinger long position can be opened to take advantage of the 3rd elliott subwave (the strongest). but this means to talk too far from now and everything can happend in the middle an a different scenario can appear so, everyday you have to update your study of the markets.

at the moment, meanwhile 3rd wave is coming a few scalps can be made following the present 5th subwave inside the first wave and following the next correction will come after (2nd wave)

elliott is hard work because to count waves can be confusing and a lot of practice is needed. aswell, some more deep study gives you the keys to know exactly in which wave you are, like fibonacci analysis and volume negociated in the market, as well as the leading indices like sp, dj transport etc.