by summerset » Sat May 22, 2010 1:12 pm
The indicator filters out wave 3 breakouts pending a wave 1-2, on the assumption that a trader can only trade a wave 3 breakout on any frame.
When ever the cycle WSI (100 periods) breaks > 1.5 or <-1.5, a bull or bear w-3 has broken out. And can be counted into a 5-3 sequence on the pulse WSI (14 periods).
The oscillator has the following applications;-
1- The trader can take signals of the 14 period WSI, once the cycle (100 period) WSI is >1.5 or below 1.5.
2- The trader can acurately count a complete Elliot cycle using the pulse WSI between 2 cycle bottoms on the cycle WSI, enabling the trader to enter at the end of a cyclic correction.
3- Using specific values from the WSI higher cycle, the trader can tell when a Wave 1-2 swing pivot is about to breakout into a wave -3 to make an early entry.
These 3 aspects are best explained, and how to implement them- with examples, on slides that I will mail WWMMACAU , and any other interested parties in the Oscillator's use.
All the Best
Sincere Regards
Summerset