Typical Market Behaviour and how our EWATSS® Trading System adapts to it, to give an edge to you over others






EWATSS® Elliott Wave Analysis and Trade Selection Trading System

All mass Markets tend to behave as below:-
  1. The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
  2. Markets movements are not random, unlike what appears to a casual person;
  3. The Primary Driver of the Markets, is not news of fundamental factors like good news, bad news, wars, terror attacks, floods, earthquakes, new discoveries, new orders, new plans, elections, coups etc etc.; From a trading perspective, no importance should be attached to news or various events happening in the world since, from a trading perspective, patterns on price charts are more important than news or events per se happening in the world.
  4. The Primary Driver of the Markets, is Crowd Psychology;
    1. Crowd Psychology determines the market movements, based on the interpretation that the Crowd Psychology attaches to any particular news at hand;
    2. Hence, Markets have risen on bad/worst news and Markets have fallen on good/best news;
  5. Crowd Psychology does not change, because behaviour of human beings does not change at the mass/crowd level;
  6. Crowd Psychology has always remained the same in past and shall also remain the same in future also;
  7. Crowd Psychology forms only 13 known Patterns on Market Charts of any stock or Index;
  8. 2 of these Patterns are Motive Patterns and the rest 11 Patterns are Corrective Patterns;
  9. Markets remain in 11 Corrective Patterns about 70%–80% of the time.
  10. 2 of these Motive Patterns are : 1 Impulse Wave Pattern and 1 Ending Diagonal Pattern;
  11. 11 of these Corrective Patterns are : Zig Zags, Flats and Triangles, or variations/combinations thereof;
  12. We should trade only the 1 Impulse Wave Pattern where you have a high-probability potential for making money;
  13. We should not trade the 1 Ending Diagonal Pattern (our opinion);
  14. We should not trade the 11 Corrective Patterns where you have a high-probability potential for losing money;
  15. Impulse Wave Pattern starts when Corrective Patterns end; Corrective Patterns start when Impulse Wave Pattern ends; Impulse Wave Pattern starts when Corrective Patterns end; Corrective Patterns start when Impulse Wave Pattern ends; Impulse Wave Pattern starts when Corrective Patterns end; Corrective Patterns start when Impulse Wave Pattern ends……..and so on;
  16. The above Cycles of Impulse Wave Pattern followed by Corrective Wave Patterns, have always repeated in the past and shall always go on repeating in future also;
  17. Since Impulse Wave Pattern starts when Corrective Wave Patterns end, the start of Impulse Wave Pattern tends to be forecastable;
  18. EWATSS® Trading System indicates upward Impulse Wave Pattern through Blue Colour on EWATSS® Daily Research Report - based on everyday sophisticated heavy lengthy mathematical data churning for a large number of stocks etc. at our backend powerful servers;
  19. EWATSS® Trading System indicates downward Impulse Wave Pattern through Red Colour on EWATSS® Daily Research Report - based on everyday sophisticated heavy lengthy mathematical data churning for a large number of stocks etc. at our backend powerful servers;
  20. EWATSS® Trading System indicates Corrective Wave Patterns through Light Pink Colour on EWATSS® Daily Research Report - based on everyday sophisticated heavy lengthy mathematical data churning for a large number of stocks etc. at our backend powerful servers.



Best wishes.

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