EWaves Envy ?

As you might know, Elliott Prechter, the son of Robert Prechter from Elliott Wave International, has spent a LOT of time and money developing the EWaves program which is purported to automatically scan thousands of markets or stocks quickly and look for their conformance to Elliott Wave patterns. I have no doubt that with today's computer capabilities that is largely or at least mostly true. For my part, I am just here to say that at least for daily and weekly charts, you can "mimic" what the EWaves charts look and feel like, just by using the Zigzag indicator on TradingView as the daily chart of the ES futures (roll-over contract) shows below.

ES Futures - Daily - ZigZag Indicator Wave Counting

This chart is current as of today. EWaves intentionally avoids using circled letters and numbers for clarity and, instead, uses larger or smaller numerals, and/or colors for wave-degree distinction.

If the ZigZag indicator is used in TradingView, one just hides the price series so that the overall form of the wave appears. The purpose of this ZigZag indicator is to provide the true "terminal points" of the move - which are often inaccurate if just closing prices are used.

When you look at this chart, among other things you might ask, "why were the letters A & B assigned to the blue labels?" It is because B wave retrace is only about 38+% which is typically smaller than a second wave, which is most often 50 - 62%. That is really the prime rationale, but the other portion of the rationale is the look of A wave - which has the look of a non-pullback wave. These no-pullback waves are often either A or C waves.

Now, we don't claim this method can scan a lot of stocks or indexes. Nor does it do the automatic labeling that Ewaves does. But if you have a few that are of interest, you might try this method to improve your own wave-labeling skills. It is very, very possible that EWaves is on to a real advantage here - and one that can take out some of the emotion. But it likely may be too pricey for some individuals and seems largely targeted to subscription services and institutions.

Have an excellent start to the evening,

TraderJoe