Find the end of one major wave and the start of another with the Wave 5 in Wave 5 in Wave 5
A very nice chap, by the name of Shola, made contact a few weeks back, asking me for some custom options on the Wave Finder indicator, which I duly coded for him. Shola’s focus is on looking for a combination of Wave 5s (and P5s) to identify high probability turning points in significant swings. In a recent email he says: “I like the 555 pattern because of its high risk to reward ratio and it is worth waiting for the setup to develop and then trade it. if the 1st attempt to reverse fails, the second break in structure hardly fails. “
I’m always very happy to hear from someone with a very sound, tried and tested, approach to technical analysis: looking for the 5th wave in the 5th wave in the 5th wave is indeed a good example of such. This is particularly so when looking for the end of a correction on a higher timeframe - the C wave in an ABC zigzag comprises 5 waves, for example. It’s nothing new or ground-breaking: Ralph Nelson Elliott identified the merits of this many decades ago, after studying 75 years of stock market data; a tough task in those days, without the powerful computers that we have readily available today.
I’ll never claim that the Wave Finder is the perfect alternative to Elliott Wave analysis by the expert human eye, but there are times when it just happens to be spot on. However, whether it’s true Elliott Wave or not doesn’t really matter, at least for our purposes: we’re using the tool as it is for smart trading and a combination of the eWave 5s, across multiple timeframes.
If you’d like to see some examples of the 555 in action, there are some super ones in this short YouTube video, along with a recent example of a 12R:R trade using one feature of the tool.
The Wave Finder indicator is an optional add-on, for owners of eWavesHarmonics – a worthy addition to any smart trader’s toolset.
Advanced Trade Manager for MT5
It's taken a lot longer than I planned but the Advanced Trade Manager (ATM) for MT5 is now available.
ATM for MT5 has all the many clever features, of the MT4 version, for speedy trade execution and management, plus the ability to automate your trading and manage trailing stops using your favourite (compatible) indicator. The only thing I have yet to do is convert the free add-on tools that come with the MT4 version - I'll get around to that in due course.
As it's an early release, I'm including two extra years on the licence for no extra charge, for the month of August only.
See the ATM page to view all the details. Just specify "MT5 version" in the Special Instructions, when placing your order.
As for the MT5 version of eWavesHarmonics: that's still very much a work in progress but will be released as soon as possible.