EWT Teaching Moment - Multiple Potential EW Counts
- Oftentimes, there is an ambiguity between multiple potential Elliott wave patterns.
- Many analysts show only their favorite count, which often turns out to be wrong.
- I prefer to show the most plausible counts; I found that to be a better approach for trade planning and risk management.
- But multiple counts are not showstoppers.
- Actually, oftentimes multiple counts point in the same near-term direction, so you take a trade and adjust based on further wave pattern evolution; some counts get dropped along the way.
- This VIX example is a nice example of multiple possible counts pointing in the same direction.