Every trader wants to earn profit in their trade. To earn profit they use different tools and indicators for their trade because they want excellence in their trade and want ideal vision in their trade. It gives more energy for getting profit in both short term and long term trade.Traders use Elliott Wave Indicator for their trade.
Elliot indicator is one of the indicators which is used for perfection in trade. Today, this article will give you everything that you want to know about Elliot’s indicator.
Elliott Waves indicator
Elliott Waves indicator is one of the indicators which give perfection in the trade. Ralph Nelson Elliot starts this indicator. He used a specific pattern for market price. This indicator does not show the waves of market price, it just indicates them, draw them, and modify them.
Elliott Waves indicator gives a specific pattern that the Stock market and traders follow which appears in trading cycles. It is a very good indicator which shows and modify market price. Many traders are using this indicator for their gain because they want to know about the market price and it helps them to trade better. This indicator also allows you to detect the waves of the indicator. It gives a profitable scanner to the trader.
When the indicator is perfectly applied to the chart then the indicator is shown as a histogram chart and splits it into two new areas one of them is positive and the other is negative. And whenever a new wave appears in the chart it begins by parting Elliot wave indicator and the price. It has the following timeframes (1-Minute, 5- Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, and 1-Month).
It has the combination of the following colors that are used in the graph are Green, Orange, Red, Purple, and Blue. In the charts,8 waves generate when the indicator is in use.
- Wave 1
- Wave 2
- Wave 3
- Wave 4
- Wave 5
- Wave A
- Wave B
- Wave C
USES of Elliott Waves indicator: –
Elliott Waves indicator has many uses that are why many stock markets and traders use this indicator to get profit in their trade. This indicator is used for perfection. This indicator is also used to know the price cycle in the market. It is also used to show a particular pattern that is used by traders. Its waves are the largest and powerful waves in the trend. It is used to start raise in an earnings estimate.
It uses a histogram. It is based on many timeframes like daily, weekly, monthly, and yearly. It is also used to indicate, draw, and modify the waves. It uses different waves for the price up to and down.
Elliott Waves indicator also has a specific pip and candlesticks from which up and down in the graph can be noted. If the candlestick is in an uptrend and they are moving above the pip then the market price is up and if the candlesticks are in a downtrend and they are moving below the pip then the market price is getting low. So this indicator helps a lot of traders to earn profit and make a healthy trade.