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Downloads Cheat Sheets Trading Corrections

The document discusses trading strategies based on Elliott Wave theory. It outlines how to identify trend directions based on oscillator positions and trade only in the direction of the higher time frame trend. It provides typical price and time targets for corrections, including retracement levels of 38.2%-78.6% for prices and 38.2%-100% projections for time. It describes trade entry strategies for long and short positions when a correction reaches typical W.C price/time targets and the oscillator shows a reversal.

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Shiraz Chunara
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1K views

Downloads Cheat Sheets Trading Corrections

The document discusses trading strategies based on Elliott Wave theory. It outlines how to identify trend directions based on oscillator positions and trade only in the direction of the higher time frame trend. It provides typical price and time targets for corrections, including retracement levels of 38.2%-78.6% for prices and 38.2%-100% projections for time. It describes trade entry strategies for long and short positions when a correction reaches typical W.C price/time targets and the oscillator shows a reversal.

Uploaded by

Shiraz Chunara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Trading Corrections (Robert Miner)

W.B completion: trade beyond W.A


extreme
W.C completion: trade beyond W.B
extreme
Completion of ABC correction: trade
beyond W.B extreme
Completion of complex correction:
trade beyond extreme of previous wave in
correction
trend: non-overlapping, "impulsive"
sections/waves, commonly ve waves
Trend direction: Determined by oscillator
position. If oscillator is bullish or oversold,
trend is bullish and only long trades may
be considered. If oscillator is bearish or
overbought, trend is bearish and only
short trades may be considered.
Multiple time frames: Always trade in the
trend direction of the next higher time
frame.
Trends
Pattern Conrmation Signals
P
r
i
c
e
min: 38.2% retracement of prior
trend
typical: 50% to 61.8% retracement
of prior trend
max: 78.6% retracement of prior
trend
Correction Price/Time Targets
T
i
m
e
typical: 38.2% to 61.8% projection
of prior trend
max: 100% projection of prior trend
typical: 100% projection of W.A
and 50% to 61.8% retracement of
prior trend
max: 162% projection of W.A
typical: 100% projection of W.A
onto W.2 and 38.2% to 61.8%
projection of prior trend. W.5:C
typically 127% to 162%
retracement of W.4:C.
P
r
i
c
e
W.C Price/Time Targets
T
i
m
e
Trade Entry #1: Swing
L
o
n
g
Setup: ABC corrective decline, W.C
at typical price/time
Entry: buy-stop 1 tick above W.B
high
Protective stop: 1 tick below W.C
low
Cancellation: trade below W.C low
S
h
o
r
t
Setup: ABC corrective rally, W.C at
typical price/time
Entry: sell-stop 1 tick below W.B
low
Protective stop: by-stop 1 tick
above W.C high
Cancellation: trade above W.C
high
Setup: ABC corrective decline with
trade into typical W.C price/time
targets, oscillator bullish reversal
Entry: Tr-1BH buy-stop 1 tick
above prior bar
Protective stop: sell-stop 1 tick
below W.C low
Cancellation: trade below W.C low
L
o
n
g
S
h
o
r
t
Setup: ABC corrective rally with
trade into typical W.C price/time
targets, oscillator bearish reversal
Entry: Tr-1BL sell-stop 1 tick below
prior bar
Protective stop: buy-stop 1 tick
above W.C high
Cancellation: trade above W.C
high
ABC Subdivisions
W
.
AImpulsive pattern, commonly ve
waves.
W
.
BCorrective pattern, commonly three
waves
W
.
C
Corrections (Countertrends)
correction: overlapping sections/waves,
usually three waves
ABC correction: most common form of
correction; three waves
complex correction: correction with more
than three waves
ABCDE correction: common form of
complex correction; ve waves
Corrective decline following bull trend
(rally) should be followed by new bull
trend above extreme of rst bull trend.
Corrective rally following bear trend
(decline) should be followed by new bear
trend below extreme of rst bear trend.
Impulsive pattern, commonly ve
waves
Trade Entry #2: Tr-1BH/L
page 1 of 1 16-Mar-11

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