The following analysis shows a REAL set up that was sent to members of the exclusive club only 4 months back and you can see how Elliott Wave Analysis helped to earn a return of over 80%.
As I often tell my members, Elliott Wave Analysis helps us to assess the probability of a move happening in the desired direction. We can also reasonably estimate the magnitude of the move, should it unfold in the anticipated way. Armed with these two inputs, you will have an edge that the average trader doesn’t have. You can now vary the size of the bet depending on the risk-reward trade off. I had offered the following analysis as a bonus for those who had taken another trade, and that other trade returned over 8% within 2 weeks. Those who held on to that other stock would have made over 45% before a correction set in. We will discuss that other trade set up in a few days. Let us now look at the Elliott Wave Analysis of Genesis Healthcare Inc (NYQ: GEN)
This first chart of Genesis Healthcare is a screen capture taken a few minutes ago. The rest of the analysis is available for you to download in the link below.
You will see on reading the full report that Elliott Wave Analysis helped us to prepare for a dip into a buy zone and although it spent several days building a base after bouncing off that low on 30 Nov 2017, it eventually started moving up. That is the edge you get by using Elliott Wave Analysis. Of course, there are scores of such examples in this blog, and the technique I use is explained in my Elliott Wave book “Five Waves to Financial Freedom”. Below is the link for you to download the full report of how Elliott Wave Analysis helped us make another smart investment.
It has been observed that in some of the higher degree waves,it becomes extremely difficult to locate internal five wave sequence for Impulsive waves and this is I am talking about mid and small cap companies.Under such circumstances,even though we dig onto lower timeframe clear observation is not located for exact five waves.This happens many times in wave 5 on daily timeframe.Whats your suggestion for such cases and how to handle such scenarios.If five waves does not get spotted and only three waves are clear than thoughts start coming if this is Irregular wave.Kindly share your experience for handling such scenarios.
Prabh, Thats a good question. The Elliott Wave Principle was designed to be used with well-traded instruments, (stock indices). If we try to apply the same to small caps and relatively thinly traded mid-caps, we will run into difficulties such as what you describe. Judgement and risk managements will then come to the fore. When in doubt, become more conservative.