Elliot Wave - Impulse

Lets dabble a bit into Elliot Waves.

This is a simple script which tries to identify Wave 1 and 2 of Elliot Impulese Wave and then projects for Wave 3.

Ratios are taken from below link: https://elliottwave-forecast.com/elliott-wave-theory/ - Section 3.1 Impulse

  • Wave 2 is 50%, 61.8%, 76.4%, or 85.4% of wave 1 - used for identifying the pattern.
  • Wave 3 is 161.8%, 200%, 261.8%, or 323.6% of wave 1-2 - used for setting the targets

Important input parameters

  • Length : Zigzag Length. Keep the numbers low if you are looking for smaller and shorter trades. Keep the numbers high if you are looking for longer and bigger trades.
  • Error Percent : Adjustments for ratios as it is not always possible to find exactly equal retracement ratio.
  • Entry Percent : Once Wave 2 is formed, entry is set after reversing 30% of wave 2. This number can be increased or decreased. Caution: Keeping the number too low may result in false signals.
  • Ignore Trend Direction: If unchecked, it will only look for pattern if Wave 1 has made a higher high. If not, it will ignore Wave 1 condition and only look at wave 1 to 2 ratio.
  • Handle Duplicates: Since, the labels are generated upon crossover of entry price, this crossover may happen multiple times. Or sometimes wave 2 can further extend and generate new signal with same wave 1. This parameter says how to handle such cases. Keep Last is set to default and is most preferred option.
  • ShowRatios and ShowWaves lets you display wave line and retracement ratios for each pivots
Notas de Lançamento:
  • Default error Percent set to 5
  • Added option for waitForConfirmation - this will wait till zigzag pivot is fully formed before considering it for wave
  • Added tightstop option which makes use of entryPercent in reverse direction.
Notas de Lançamento: Ok, I have rewritten the code completely to avoid errors on shorter timeframes. With this logic, target and stop labels appear only for last formed pattern. This is again done to avoid errors related to too many objects on the chart.
Notas de Lançamento: Adjust stop, entry and target label, line position based on timeframes
Notas de Lançamento: Added alert condition
Notas de Lançamento: Fix zigzag calculation error.
Script de código aberto

No verdadeiro espírito TradingView, o autor deste script o publicou com código aberto, para que os traders possam compreendê-lo e verificá-lo. Um brinde ao autor! Você pode usá-lo gratuitamente, mas a reutilização deste código em uma publicação é regida pelas Regras da Casa. Você pode favoritá-lo para utilizá-lo em um gráfico.

Quer usar esse script no gráfico?
Please PM me if you need access to any invite only scripts.

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Amazing indicator, really highly underrated on TV given that it is a proven strategy with great risk: reward ratio for part-time or full-time traders.

I was wondering if you would at all make it possible for the fib extensions to have a logarithmic option for those that trade on the log-based charts. I am happy to draw these myself but a toggle on/off check-box would be useful, IMO.

Thanks once again.
+1 Resposta
HeWhoMustNotBeNamed berkcollective
@berkcollective, Hi, thanks for the suggestion. I will check. Btw, I have next version of this script. You can take a look at them as well.

Keep up the good work! You're talented! Please how do we know where the waves 1 and 2 are starting? For example, when I change the timeframes, I'm unsure where each wave begins. Do help when you have time, thanks
+1 Resposta
@princerustle, we don’t need to know where wave 1 or 2 begin. Idea here is to ride wave3 which is the biggest wave of all in most cases.
princerustle HeWhoMustNotBeNamed
@HeWhoMustNotBeNamed, Alright gotcha!
Hi, I realise your indicator actually dose corrective wave as well. Or is it just an algo calculation mistake? If yes, please change title to Elliot Wave Impulse + Correction.
@FarhatBmdhj, The script is very primitive at this stage. I am not trying to count till wave 5 to label it as corrective wave. Hence, corrective wave might be shown as Wave 1/2/3. Well, there is definitely lot to build and improve on top of this.
hey how do i get version 2?
@Xamanus, hey. Click on my profile, go-to published scripts section and browse through. You will find version 2.

Alternatively, search in TradingView search bar.