What you find described below is only the Basic version of
ELWAVE. The Automatic module will do the Elliott Wave analysis
fully automatically and present the results in the Summary
Below you will find an explanation and a screenshot of ELWAVE
which shows the results after the manual wave count has been
checked by the software. Please note that you have to insert
the wave labels manually when you only use the Basic version.
The layout of the screen can be defined by the user in order
to present the information according to your preferences.
At the right bottom we have put the chart that
has been analyzed. Above the chart you will find the Fibonacci
ratios of the selected wave (wave IV) and its subwaves. This
shows clearly the fit of the internal Fibonacci relationships.
A lot of "red hot" Fibonacci's increase the probability
of a wave count.
Above the wave count you can put the indicator(s)
you would like to see. Clearly the RSI shows a divergence
at wave C and E indicating that a reversal is at hand. The
TABS (Elliott Osc, RSI 14, MACD etc.) facilitate switching
between indicators immediately.
At the left the so called "Wave tree"
is visible. The Wave tree visualizes the wave structure that
has been defined. A cross (X) in a wave tree button indicates
that a wave has not yet been finished or that a wave degree
is missing. If ELWAVE has found one or more matching
patterns, these will be displayed next to a wave button, which
contains the wave label. Of course each wave label represents
a wave and each wave should contain a valid pattern.
If no pattern has been defined the message "undefined"
will appear. If no pattern has been found, indicating that
important rules have been violated, the message "No patterns
match" will appear! Since rules have been violated this
urges the user to change the wave count.
The wave tree helps to navigate the chart and
to go quickly to those sections of the chart, which need further
inspection or fine tuning. Just click on a wave button in
the wave tree and the chart window will show the correct section
of the chart as well as the wanted detail level. At the same
time the Fibonacci pane, if activated, will show the connected
Fibonacci ratios. Clicking on a "+ button" will
expand the wave, clicking on the "- button" will
collapse the wave.
Below the Wave tree you will find a list of
the main errors found. Clicking on one of the items in this
list will immediately display the correct section in the Wave
tree and chart, and show where an error has been detected.
In the middle of the screen the "Wave inspector"
gives information on the wave under inspection. In the Wave
tree wave IV has been highlighted, ofcourse the chart shows
wave IV, the Wave inspector displays information with regard
to the pattern found in wave IV.
The pattern which has been found by ELWAVE is
an Expanding Triangle. Since this is the only matching pattern,
its information has been displayed automatically. First you
will find the definition of the pattern and some general information.
Then the check on the "Internal structure" of the
wave under investigation is listed (in this case an Expanding
Triangle should contain corrective patterns only), next the
RULES and GUIDELINES are displayed. You can for instance choose
to display all rules or only the rules which caused a rule
Under Guidelines in the Wave inspector, you will also find
general information on the behavior of channels and indicators
with different patterns.
If you choose one of the "mismatched "
patterns, which are listed at the top right of the Wave inspector,
information on that particular pattern will be shown. A red
cross will indicate clearly which rule has been violated.
[Click picture to get larger version]