So, many times we as analysts start fighting over our Elliott Wave counts. I would like you look at the recent example which I have shared for, nifty it could be for any xyz stock. I am evaluating from the point of view of 2 different analysts. They were seeing random charts to spot the trading opportunity with Elliott Wave analysis; soon they came up with their counts on this chart which were very different. The analysts are not going to marry this stock, they are only concerned with the next trading opportunity, enter the trade, make profit and exit and then scan some other chart. However, they started fighting and pointing fingers in each others analysis. Later their senior came in asked what was the case.
Analyst A: I believe that the impulsive with 1,2,3,4 done and 5th failed. (in black colour)
Analyst B: I believed, that ABC was over on the upside and now the wave 1 decline and wave 2 advance seems to be over. (in red colour)
Senior: So analyst A what do you expect after the 5th wave failure?
Analyst A: since the wave 5th has failed, it shows the underlying weakness in the market and this suggests a quick fall with high momentum, which can give us a good profit.
Senior: Good. (Turing towards Analyst B) and what did you expect?
Analyst B: Since wave 1 is over and 2 also seems to over, wave 3 must be followed which is steepest and longest, so I also expect market to go down. Oh god, (running towards his desk) I think I got my answer.
Analyst A: from now on we will keep the labeling discussion secondary, we will discuss that where is the market going, up or down and trade in that direction rather wasting time in fighting for counts.
Senior: Smiling towards both of them go and take the trade and let me know profits earned by each one of you. Don’t compete with each other this particular trade, there will be many opportunities like this every day. Your true trading skills will be tested in longer term, be patient.
Senior realizing the opportunity, shouts and says while just entering in his cabin, “let me know once you guys are done, I will try to go long once.”
This is just a example how two people can have different counts while still be right. Their senior represent a deeper character that hunts for bargains and waits patiently, mentors his subordinates.
Similarly, you also need to find your mentor within yourself. You can each day work and find 3 great things you did good in your trading and then you can write what 3 things you could have done differently, which could have saved you capital or increased your profits and stopped you from entering into wrong trades. Answer is with in you.