Sage 50 Complete Accounting 2015 Practice Set,
Here are some common Elliott Wave trading strategies:
Wave 5 is making a marginal new high above Wave 3, but RSI/MACD shows bearish divergence. Setup: Look for an ending diagonal (wedge) in Wave 5. Entry: Short immediately after Wave 5 completes and breaks the trendline of the wedge. Stop Loss: Above the high of Wave 5. Target: The start of Wave 4 or Wave 2 (often a 38.2% retrace of the total impulse). Why it works: Exhaustion; you are trading the start of a new corrective cycle (A-B-C down). Here are some common Elliott Wave trading strategies:
These follow the main trend and consist of five sub-waves, labeled 1 through 5. labeled 1 through 5.