Since the analytics is also published in the public domain, I decided to write what notations I use in it to make it easier for you to navigate and trade even on the free content. Here we go!
The standard notation – since each wave is a fractal, by definition, it is composed of other waves (subwaves), as well as being itself a wave (subwave) of a degree older. In order not to get lost in this, Prechter and Frost proposed to systematize the scale in their book for all Elliott Waves’ analysts.
If there is no technical possibility, for example, in the text, the circle is replaced by square brackets [ ].
Blue dashed arrows – the assumed character of the upcoming movement in the main scenario, which shows the power (or its lack) in the upcoming waves. Note, that this character is not related to the time axis, or even to the price axis. However, I sometimes give reference points by time using methods different from the Elliott Waves and I write about it in the text of the forecast. And I orientate by price using other notations, which you will read about below.
The gray and black letters and numbers – alternative scenarios according to the Wave Analysis technique. If there are no gray and black dotted arrows to the future on the chart, yet, it means that the counts do not differ in directions. Then they are different only for the Elliott Waves’ analysts. If the chart has a gray or black dotted line in addition to the blue one, it means that I am assuming likely alternatives in case the main scenario is broken.
The gray and black dotted arrows – alternative scenarios of future price movements. As a rule, they begin after orange or red levels – levels of cancellation of the main scenario. Sometimes you can use them to open a trade in the opposite direction to the original prediction.
Orange level – the cancellation of the local scenario with the preservation of the forecast on the higher degrees. For example, an impulse may become a diagonal or there can be a flat instead of a triangle in the fourth wave. Speculative stop-losses are placed here.
The red level – the cancellation of a scenario at the current degree or at a higher degree. The thicker the red level, the more significant it is for count. And, accordingly, it is more reliable for setting a stop-loss – counts on higher degrees come true with a probability of about 80%.
The green level – the place to confirm the main scenario. There you can move stop-losses to the breakeven, close part of the margin position or open reliable medium- and long-term investment trades.
The blue level and the blue area – the target for the main option. The closer this place is to the current price, the more likely it is to close there by a take-profit. At these levels and areas we need to place take-profit on the order and exit investment positions.
Coloured channels and trend lines – their color coincides with the degree of the developing wave in my counts. If a corrective model (w)-(x)-(y) is developing, the trend markings for it will be green, since green is the color of the standard notation for it.
Coloured Fibonacci levels – similar to the channels and trend levels, the color coincides with the developing wave. If a wave “2” is developing, the Fibonacci levels for it will be blue on my counts.
Purple colour – I use it to indicate something unusual for my counts: Wolfe wave or a fractal or something else from the world of technical analysis.
Hope, you find this article useful and interesting. Have a profit trades!