Elliott Wave Indicator for MetaTrader 4
The Elliott Wave Indicator for MetaTrader 4 (MT4) is a tool designed to help traders identify and analyze Elliott Wave patterns on price charts within the MT4 trading platform. The Elliott Wave Indicator for MT4 typically provides the following features:
- Identification of Wave Counts: The indicator aims to automatically identify and label Elliott Wave patterns on price charts, including impulse waves and corrective waves.
- Wave Labels: It labels waves according to Elliott Wave theory, such as labeling impulse waves with numbers (1, 2, 3, 4, 5) and corrective waves with letters (A, B, C).
- Wave Extensions and Retracements: The indicator may also highlight potential wave extensions (such as wave 3 being longer than wave 1) and retracements (such as wave 2 retracing a portion of wave 1).
- Fibonacci Ratios: Elliott Wave theory often involves the use of Fibonacci ratios to identify potential reversal or extension levels within waves. The indicator may include Fibonacci retracement and extension levels that correspond to specific Elliott Wave patterns.
- Visualization: The Elliott Wave Indicator typically visualizes wave counts and patterns on price charts, making it easier for traders to identify and analyze potential trading opportunities based on Elliott Wave theory.
For Elliott Wave Trader, it is necessary to have a good Elliott Wave Indicator for the day trading in Forex and Stock market. It is because Elliott Wave theory is not easy to be completed manually. However, once you understand its trading principle, Elliott Wave can advance your trading performance pretty fast. They do provide the great approach to solve the geometric puzzle in the forex and stock market. We provide two Elliott Wave tools in MetaTrader 4 platform.
Elliott Wave theory can be beneficial to predict the market movement if they are used correctly. Junior traders are often fear to use Elliott Wave because their complexity. From my experience, Elliott wave is not a rocket science, anyone can probably learn how to use the technique with some commitment. However, not all the book and educational materials will teach them in the scientific way. If we are just looking at the three rules from the original Wave principle only, then there are definitely some rooms where subjective judgement can play in our wave counting. This makes starters to give up the Elliott Wave practice too quickly. Fortunately, there are some additional tools to overcome the subjectivity in our wave counting. First tool but the most important tool is definitely the three wave rules from the original Wave Principle. They can be used as the most important guideline for the wave counting. Below we describe the three rules:
- Rule 1: Wave 2 can never retrace more than 100 percent of wave 1.
- Rule 2: Wave 4 may never end in the price territory of wave 1.
- Rule 3: Out of the three impulse waves (i.e. wave 1, 3 and 5), wave 3 can never the shortest.
Second tool is the Fibonacci ratio. As in the Harmonic pattern detection, Fibonacci ratio can play an important role in our wave counting because they describe the wavelength of each wave in regards to their neighbouring wave. For example, the following relationship is often found among the five wave of the impulse wave. Depending on which wave is extended among wave one, three and five, the Fibonacci ratios are different. Most of time, the extension of wave 3 is most frequently observed in the real world trading.
Unless wave 1 is extended, wave 4 often divides five impulse waves into the Golden Section. If the wave 5 is not extended, the price range from the starting point of wave 1 to the ending point of wave 4 make up 61.8% of the overall height of the impulse wave. If wave 5 is extended, then the price range from the starting point of wave 1 to the ending point of wave 4 make up 38.2% of the overall height of the impulse wave. These two rules are rough guideline. Sometime, trader can observe some cases where these two rules are not hold true. Personally, I normally place the Fibonacci ratio relationship before this Golden Section rule. However, the priority between these two rules might depend on the preference of traders.
The corrective wave is often retrace 61.8% or 32.8% against the size of previous impulse wave. In general, Elliott suggested that corrective wave 2 and wave 4 have the alternating relationship. If wave 2 is simple, then wave 4 is complex. Likewise, if wave 2 is complex, then wave 4 is simple. A “Simple” correction means only one wave structure whereas a “Complex” correction means three corrective wave structures. Furthermore, if wave 2 is sharp correction, then wave 4 can be sideways correction. Likewise, if wave 2 is sideways correction, then wave 4 can be sharp correction.
Third tool, which can be helpful in overcoming the subjectivity, is using template. Template is a rough wave counting drawn in your chart using some sort of very simple automatic algorithm. Even though, the template does not provide you the perfect counting, the template can be helpful in eliminating thousands of alternative possibilities in first place. We found that this makes the wave counting more accurate and easier. The Peak Trough analysis is one of the good templates to start with wave counting. You can always create your own alternative version of the template if you wish. However, we will stick with the Peak Trough analysis as our basic template in this book. Trader can use both Zig Zag and the modified Fractal indicator for wave counting task. The modified Fractal indicator can show more peaks and troughs for you to work with. However, it is still good approach for your wave counting.
When you combine the three wave rules, Fibonacci ratio and the template, you are not likely to get lost with your counting. Trader can make use of this approach for his daily trading decision too. When you want to count waves, the first thing you need to do is to select the right timeframe showing some countable peaks and troughs.
MetaTrader 4 is one of the most popular trading platform since 2010. It is accessible for free of charge for any trader from all over the world. We provide two powerful Elliott Wave Indicators for this platform. Hence, you have two choice in selecting Elliott Wave Indicators for your trading. These tools are already used by thousands professional trader in day to day operation.
1. Elliott Wave Trend for MetaTrader 4
Elliott Wave Trend is extremely powerful Elliott wave indicator. This indicator allows you to perform Elliott wave counting as well as Elliott wave pattern detection. All these are the essential steps in predicting market with Elliott Wave theory. On top of them, it provides built in support and resistance system and turning point strength indicator to improve your trading performance. Yet, there are many additional features for you to explorer inside this technical indicator.
https://www.mql5.com/en/market/product/16479
https://algotrading-investment.com/portfolio-item/elliott-wave-trend/
At the same time, you can watch YouTube video titled as “Elliott Wave Trend Intro to find out more about Elliott Wave Trend Indicator.
YouTube Link: https://youtu.be/Oftml-JKyKM
2. X3 Chart Pattern Scanner for MetaTrader 4
X3 Chart Pattern Scanner is specialized tools in detecting the chart patterns including Harmonic Pattern and Elliott Wave Patterns, and more more patterns. Pattern detection process is fully automatic + you can even create customized Elliott wave and Harmonic patterns if you wish. Yet, this is only short summary though, you can find out more information and its features from product page. It is very unique and powerful tool in the world of trading.
https://www.mql5.com/en/market/product/41993
https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/
YouTube “Non Repainting Non Lagging Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ
In summary, both tools are the high performance trading system. However, if you want to use Elliott wave trading exclusively, then you should go for Elliott Wave trend. If you do not mind both Elliott Wave and Harmonic Pattern Trading, then you should use X3 Chart Pattern Scanner.
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