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Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558,

Email: info@prognosis.nl
COPYRIGHT
Copyright © 1996, 2009 Prognosis Software Development.
P.O. Box 2944
2601 CX Delft, Netherlands
This manual is copyrighted. No part of this manual may be

reproduced, stored in a retrieval system, or transmitted in any form
or by any means, electronic, mechanical, photocopying, recording
or otherwise without the prior written permission of Prognosis
Software Development.
Every effort has been made to ensure complete and accurate
information concerning the material presented in this manual.
However, Prognosis Software Development can neither guarantee
nor be held legally responsible for any mistakes in printing or faulty
instructions contained in this book.
Version 9.1-1 20022009
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CONTENT
Copyright ____________________________________________ 2
Content ______________________________________________ 3
Introduction __________________________________________ 7
Indicators ____________________________________________ 7
1. General_______________________________________________ 7
Special feature_____________________________________________ 8
2. Creating an indicator in the price chart ____________________ 9
3. Creating an indicator in a separate pane __________________ 10
4. Modifying indicators___________________________________ 10
5. Deleting or removing indicators__________________________ 10
6. Changing indicator properties ___________________________ 11
7. Explanation of indicators _______________________________ 11
Relative Strength index _______________________________________ 11
Trading RSI ________________________________________________ 11
Moving Averages (MA) ______________________________________ 13
Trading Moving Averages_____________________________________ 13
Moving Average Convergence Divergence (MACD) ________________ 14
Trading the MACD __________________________________________ 14
Momentum ________________________________________________ 15
Trading Momentum__________________________________________ 15
Rate of Change _____________________________________________ 16
Trading Rate of Change (ROC)_________________________________ 16
Elliott Oscillator ____________________________________________ 17
Trading the Elliott Oscillator___________________________________ 18
Time Fibonacci pane _________________________________________ 20
How does it work? ________________________________________ 22
Adjusting settings of Time Clusters ___________________________ 22
Scanning ____________________________________________ 23
1. First steps using Scanning ______________________________ 23
2. Scan Inspector ________________________________________ 26
3
Scan list ___________________________________________________ 26
Scanning Conditions _________________________________________ 27
Analyse in scanning (Batchprocessor) ___________________________ 27
Batchprocessor (Scanning version) ______________________________ 28
Actions to perform ________________________________________ 28
Other batchprocessor options ________________________________ 29
SCAN NOW! ______________________________________________ 29
Scanned-accepted-rejected progress indicator______________________ 30
Accepted __________________________________________________ 30
Rejected___________________________________________________ 30
Open chart _________________________________________________ 30
Show details _______________________________________________ 30
Explain ___________________________________________________ 31
Wave( information in the Summary Inspector) _____________________ 31
Sort in scanning_____________________________________________ 32
Easy to use Predefined scanning conditions sets____________________ 32
3 positive all degrees_______________________________________ 32
3 negative all degrees ______________________________________ 33
Searching for a Wave ________________________________________ 33
Other selection criteria _______________________________________ 34
EASI ___________________________________________________ 34
Trend___________________________________________________ 34
Abs. % (min)_____________________________________________ 35
Reward (min) ____________________________________________ 35
R/R (min/max) ___________________________________________ 36
Analysis results explained ______________________________ 40
The Price Chart window ______________________________________ 40
The Toolbars _______________________________________________ 41
The Wave Tree _____________________________________________ 42
The Wave Inspector__________________________________________ 46
The Summary Inspector ______________________________________ 49
Wave information in the Summary Inspector ____________________ 49
Other information _________________________________________ 50
Automatic analysis ─ Interpretation ______________________ 53
1. General______________________________________________ 53
2. Targets ______________________________________________ 55
3. Experts information ___________________________________ 56
Elliott Wave model __________________________________________ 57
Fractals _________________________________________________ 57
Basic patterns ____________________________________________ 58
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Internal structure __________________________________________ 58
Proportions ______________________________________________ 58
Other selection criteria _____________________________________ 59
Calibration_________________________________________________ 60
Ranking alternative wave counts________________________________ 60
Inspecting alternative wave counts ______________________________ 62
Multiple time frames _________________________________________ 63
Multiple sessions (not recommended to TRIAL users) _______________ 65
Analysing intra day charts _____________________________________ 65
Converting wave counts to scenarios ____________________________ 66
Analysis options ____________________________________________ 66
4. Analysis Examples_____________________________________ 69
Analysing Finished waves_____________________________________ 70
Analysing Unfinished waves___________________________________ 71
Using your own wave count ___________________________________ 72
3. Signal Inspector_______________________________________ 73
4. Alert Inspector________________________________________ 75
5. Some examples________________________________________ 79
Manual Wave count ___________________________________ 81
1. Make your own wave count _____________________________ 81
Changing the existing wave labeling_____________________________ 82
Changing the color of a wave degree ____________________________ 82
Deleting wave labels _________________________________________ 82
Change wave degree _________________________________________ 83
2. Check manual wave count ______________________________ 83
How to check hand made Wave Counts __________________________ 85
Options ___________________________________________________ 85
3. Wave Tree ___________________________________________ 86
4. Wave Inspector _______________________________________ 87
Pattern in chart _____________________________________________ 88
Options ___________________________________________________ 89
5. Trouble shooting ______________________________________ 90
Tools—extra information_______________________________ 91
1. Price targets __________________________________________ 91
Projecting Targets ___________________________________________ 91
Changing Target properties ____________________________________ 93
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Deleting Targets ____________________________________________ 93
2. Analyse Fibonacci price relationships _____________________ 93
Displaying Fibonacci ratios____________________________________ 93
Deleting the Fibonacci Pane ___________________________________ 95
3. Scenarios ____________________________________________ 95
4. DDE link for retrieving data ____________________________ 95
General instructions__________________________________________ 96
Real-time feed with Tradestation / Omega server ___________________ 97
Initiating a real-time feed directly _______________________________ 97
Excel example ______________________________________________ 99
The real-time feed dialog box __________________________________ 99
Step by step example________________________________________ 101
Starting the real-time feed for the first time ____________________ 101
Restarting the real-time feed ________________________________ 104
Saving your intra day data____________________________________ 105
ELWAVE for TradeStation____________________________ 106
Installation ____________________________________________ 107
Plug-in versus Stand-Alone ______________________________ 109
Getting Started ________________________________________ 110
Understanding the 'ShowMe' study _______________________ 112
Labels: The Elliott Wave Count _______________________________ 112
Price Targets ______________________________________________ 113
Removing an Elliott Wave analysis ____________________________ 115
Elliott Wave Oscillator in TradeStation ____________________ 117
Accessing ELWAVE data in Easy Language_________________ 118
_ELWAVE Activate and _ELWAVE Variable ___________________ 119
Annotated source code ______________________________________ 119
Stand-Alone version from TradeStation ____________________ 120
Tips: Do's and Don't ____________________________________ 121
Accessing Omega Data outside TradeStation________________ 123
Setting Omega Data to work well in ELWAVE ___________________ 124
Index ______________________________________________ 126
6
INTRODUCTION
In the Advanced section of the manual we will give a more

detailed explanation of the Analysis, its results and many
advanced topics such as labeling the waves manually in
stead of using the automatic engine.
This section is valuable and written for Elliott Wave experts

as well as beginners with curious minds, who are interested
in the complexity of the Elliott Wave method.
INDICATORS
1. General
A selective set of indicators is available, which can help you
determine the wave structure. Remember that an Elliott
Wave trader makes his trading decision mostly on the wave
NOTE: All separate count and not solely on indicator values. On the other hand
windows and panes
some indicators can be very helpful, because they show
can be resized by
grabbing the
specific characteristics in different waves.
borderline between Indicators can be added to the price chart or in a separate
the price chart and window. Normally, indicators like moving averages and others,
indicator and which have the same scaling as a price chart, are added to the
dragging it to its new price chart itself. Other indicators, like for example RSI, are
position. Also it is more clearly displayed in a separate window.
possible to close this To add an indicator to the price chart select Insert from the
window by grabbing main menu and choose the menu item Add New Indicator to
the borderline and Price chart. A list box with available indicators appears.
dragging it to the
Select the indicator you would like to add, click on the ADD
very top of this
window.
button and click OK. If you wish to change the properties
(number of periods, appearance etc.) of the indicator just click
on the PROPERTIES button. To remove an indicator click the
REMOVE button.
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Alternatively you can change the properties of any indicator
by double clicking exactly on the indicator line with your left
mouse button.
To add an indicator in a new window or pane above the
price chart, select the menu item Add New Indicator Pane
from the Insert menu. The same list box will appear and you
Tip: Change
the properties can select the indicator of your choice. By clicking OK the
of an indicator indicator will be displayed. The buttons mentioned above
by double (“Properties and Remove”) work in the same way.
clicking the
Special feature
indicator line.
The indicator pane has a special feature. On top of the
indicator pane you will find “Tabs”, which represent the
Tip: Place sheet under which an indicator has been put.
indicators under The first indicator you have defined will appear in the first tab
TABS in the and so on. Now it is very easy to switch indicators by just
indicator pane to clicking a tab with your mouse!
have fast access. Probably you would like to save your work, perhaps to create
If you like to an alternative scenario with other wave counts, indicators and
compare analysis.
indicators, insert
each indicator in
a different pane.
The most useful indicators have been included, which are the
Of course this following, not all of them have been explained, since all books
will consume a on technical analysis already clarify their use:
lot of space and • RSI
will leave less • MACD
room for your • DMI
price chart. • Momentum
• Exponential Moving Average
• Simple Moving Average
• Displaced Moving average
• Rate of Change
• Elliott Oscillator
• Stochastic
• Volume
• Bollinger Bands
• Keltner channels
• Parabolic
• Time Fibonacci
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• Aosc (Williams indicator, see Trading chaos)
• Acosc (Williams indicator)
Indicators always have the same compression as the price

chart. For example if the RSI has been set to a time period
of 14 and a daily bar is displayed in the price chart, then the
RSI will calculate a 14-day RSI. If you change the price
chart to weekly, the RSI will calculate a 14-week RSI. The
same accounts for intra day (intra day version only), for
example an hourly chart creates a 14-hourly RSI and so on.
2. Creating an indicator in the price chart

To create a new indicator or to add an indicator in the active
price chart window, click the right mouse button and select
Insert from the menu. Next choose New Indicator in Price
Chart. A dialog box will appear which displays available
indicators at the left and selected indicators at the right.
At first the box at the right will be empty, so you have to
select an indicator. After selecting an indicator from the left,
you click the ADD button to add this indicator to your
selection. If you choose to display more then one indicator
in the same price chart, for example several moving
averages, just select another indicator and click the ADD
button again. Then click OK and you will return to the price
chart in which the selected indicator(s) will be displayed. In
theory you can select as many indicators as you like, but
too many indicators in the price chart will make the chart
very complex.
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3. Creating an indicator in a separate pane
To create a new indicator or to add an indicator in a
separate pane, choose Insert from the main menu and select
NOTE: adding the menu item New Indicator Pane. A box will appear which
indicators to displays available indicators at the left and selected indicators
price charts is at the right.
meant for The box at the right will be empty, you have to select an
indicators that
indicator first. After selecting an indicator from the left, you
use the same
scaling as the click the ADD button to add this indicator to your selection. If
price chart, you choose to display more then one indicator, make a
like moving selection again. It is possible to display more moving
averages. averages in the same window at the same time. Other
indicators can not be combined.
4. Modifying indicators
If you want to modify an indicator, which has been inserted
under a TAB of the indicator pane, first click on the tab. Next
Tip: click the right mouse button, while your mouse pointer is
Alternatively
positioned on the indicator pane, and the indicator dialog box
you can double
click the will appear. Select from the right window the indicator you
indicator line would like to modify by clicking on it. Click on the MODIFY button
to change its and a dialog box will appear in which the appearance and the
properties. parameters of the indicator can be adjusted. Click on the TAB
of your choice, modify the indicator and select OK if you agree
to the modifications, otherwise select CANCEL.
5. Deleting or removing indicators

To remove an entire indicator pane you can grab the lower
border of the indicator pane and drag it to the top. Release
the mouse button and the pane will disappear.
If you want to delete an indicator which has been inserted
under a TAB of the indicator pane, first click on the tab. Next
click the right mouse button, while your mouse pointer is
positioned on the appropriate indicator pane, and the
indicator dialog box will appear. Select the indicator you
would like to remove from the right window by clicking on it.
Click on the REMOVE button and the indicator will no longer
be selected.
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6. Changing indicator properties
Position your mouse pointer on the indicator pane and
press the right mouse button. Choose Indicators from the
pop up menu. A dialog box will appear from which you can
choose Properties... and the indicator dialog box will
appear. Select an indicator from the window at the right and
click on the PROPERTIES button. Next a dialog box will appear
where you can change the parameters of the selected
indicator or change the appearance of the indicator.
7. Explanation of indicators
Relative Strength index
Relative Strength Index (RSI) is an oscillator developed by
J. Welles Wilder, JR. It is a very popular indicator and
useful when using ELWAVE.
RSI measures the strength of any price action by monitoring
changes in its closing prices. It is a leading or a coincident
indicator, it never lags the price action. The RSI indicator
fluctuates between 0 and 100. Horizontal reference lines in
the RSI are often drawn at 30 and 70.
Trading RSI
RSI can give several buy or sell signals, which are
divergences, patterns, trend lines and the absolute level of
RSI, the RSI levels as already mentioned. Divergences are
the most important signals.
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Divergences between RSI and prices give the strongest
buy and sell signals. Normally this happens at tops and
lows in an impulsive wave, which consists of five waves. If
the C wave is equal in length to wave A, the RSI should also
Tip: look for a
divergence in the show a divergence. Generally a divergence indicates that the
RSI within an trend is weak and ready to reverse.
impulse wave of A bullish divergence gives a buy signal, when prices fall to a
any degree, new low but RSI fails to make a new low. You can buy as
which is very soon as the first RSI low has been below its lower reference
helpful to line (for example at 30) and the second low of the RSI
determine a third happens above the reference line. A bearish divergence
wave. Normally a works exactly the same, but the other way round. It gives sell
third wave shows signals. You can sell as soon as the first RSI high has been
the most extreme
above its higher reference line (for example at 70) and the
reading of the
RSI, the fifth
second top of the RSI happens underneath the reference line.
wave should fail
to surpass the Second divergence between 3 and 5 in subwave: Sell
low or high of the
RSI, set in the
third wave of the
same degree.
Divergence between
main wave 3 and 5,
signalling a correction
to previous 4th wave
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Trend lines, support and resistance lines, and patterns,
like “head and shoulders”, work fine with RSI. Because RSI
leads the price chart, it often gives an early warning of likely
trend changes. RSI trend lines are penetrated before it
Tip: Experiment happens in the price chart and patterns can be completed a
with different few days before completion in the price chart. Of course the
time periods for fifth wave of a RSI mostly is a failure, except when the fifth
a moving wave is an extension.
average and try
RSI levels indicate that above 70 the market is overbought,
to figure out for
the waves in a
which calls for a correction, although the RSI can reach 80
pattern if and by and more in a bull market. Below 30 the market is oversold,
how much the so a rise can be expected, but be careful because in a bear
MA line gets market a RSI beneath 20 is quite common. So when the RSI
penetrated by goes above 70 and certainly above 80, look for a selling
prices when opportunity. Below 30 and certainly 20, look to buy.
using a specific
period. Moving Averages (MA)
For example in a
third wave or a C A 10-day MA shows the average price for the past 10 days, a
wave- if the time 30-day MA shows the average price for the past 30 days. A
period has been moving average normally will be displayed in the price chart
set correctly- the as a line, by connecting each day's MA values.
moving average Moving averages can be calculated as a simple moving
line should not average, which gives each day an equal weight.
be penetrated
after it has been
Also, an exponential moving average can be calculated,
broken by the where the latter days are more heavily weighted.
price. Wave 4 With a moving average you can see the main trend more
will break the easily, because it filters out small price movements. When it
moving average rises, the moving average shows that investors become more
line, which tells optimistic. When it falls, investors become more pessimistic.
you the end of An exponential moving average (EMA) is a better trend-
the trend is near. following indicator than a simple MA, because it responds
faster to the latest price changes than a simple MA and
skips the older data which are less relevant.
Trading Moving Averages

For the investor, moving averages are most helpful in
following the trend. The direction of its slope in each time
frame tells you what the trend of this specific time frame is.
Be sure to trade in the direction of the trend of the time
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frame you use. When you are trading a trend, you can use
a short term MA as a stop
In the price chart you could also display a short term MA
and a longer term MA. When the shorter term MA crosses
the longer MA in upward direction this is a buy signal, which
confirms the uptrend. When it dips under the longer term
MA this is regarded as a sell signal. Be careful with this
signal, because a sideways market shows a lot of
crossovers and thus a lot of false signals.
You can also use a moving average as a stop. The shorter
your investment horizon the shorter your moving average
should be. As soon as prices break the moving average line
you can close your position. This can be very useful if you
want to invest in a third wave only.
Moving Average Convergence Divergence (MACD)

Gerard Appel has constructed a more advanced indicator,
called the Moving Average Convergence-Divergence, or
MACD, which is built of three exponential moving averages.
It is displayed as two lines, the MACD line and the Signal
line. The MACD line is built out of two exponential moving
averages (EMAs). The signal line is built from the MACD
line smoothed with another EMA. The MACD line responds
more quickly to changes in prices.
Buy and sell signals occur when the fast MACD line crosses
above or below the slow Signal line.
Trading the MACD

You can use the crossovers of the MACD and
signal lines to trade with the trend of the market.
• The fast MACD line crossing above the slow Signal line
gives a buy signal.
• The fast MACD line crossing below the slow Signal line
gives a sell signal.
Also you can look for divergences as explained with the RSI
to determine the momentum of the market. Again a wave 3
should have the lowest (bear market) or highest (bull
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market) MACD. Divergences in the MACD don’t work on
longer term.
Momentum
The Momentum indicator shows how strong the trend is by
measuring its acceleration. The faster Momentum gains or
loses speed the more the trend accelerates. This is a
leading indicator, which usually reaches a peak before
prices reach their highs and reaches a low before prices
reach their lows.
Trading Momentum
The trend is up as long as Momentum gets higher and
higher, you can normally hold on to your bullish positions.
As long as it keeps reaching new lows, you can hold on to
your short trades. Every time Momentum reaches a new
high, the uptrend is still accelerating. Every time Momentum
reaches a new low, the downtrend is still accelerating.
When the direction of Momentum changes, without having
set a divergence already, be prepared for a reversal.
You can use Momentum to catch large trends, for this
purpose use a longer time frame. If you want to spot
changes in the trend quickly, then use a shorter period
Momentum.
When the direction of Momentum changes, the pattern
could be the third of a C wave or the third of a five wave. A
small correction will take place to form the 4th wave. The
fifth wave still has to develop in the same direction of the
trend. When this fifth wave is underway, you can cover your
shorts or sell your longs.
Again a divergence is one of the most powerful signals,

which normally occurs in every five-wave structure. The
bigger the divergence the sharper the reversal can be.
If Momentum fails to make a new high or low, this could be
a C wave or a five-wave structure, which depends on the
wave structure of a larger degree.
If you can recognize five waves in a C wave in a larger
trend, which points to the opposite direction, and at the
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same time Momentum makes a lower top or a higher low, it
is better to close your (trend following) positions at once.
After a C wave the reversal could be quite sharp. On the
other hand, if the larger trend is still up, this only could be
wave 3 with wave 4 and 5 to follow. Here you could hold on
to your positions depending on the wave degree you have
determined. In a larger degree a bigger reversal can be
expected, making it worthwhile to exit. Later on you can
possibly reenter at a better price.
You can also draw trend lines or channels to identify
support and resistance in the indicators. Usually Momentum
breaks through its resistance a long time (relatively
speaking) before prices do.
Rate of Change
Rate of Change is quite similar to Momentum, since it also
measures the strength of a trend. The only difference is that
Rate of Change is calculated differently. It divides today's
price by a past price.
The faster Rate of Change gains or loses speed the more
the trend accelerates. This is a leading indicator, which
usually reaches a peak before prices reach their highs and
reaches a low before prices reach their lows.
Trading Rate of Change (ROC)

The trend is up as long as Rate of Change gets higher and
higher, you can normally hold on to your bullish positions.
As long as it keeps reaching new lows, you can hold on to
your short trade positions. Every time Rate of Change
reaches a new high, the uptrend is still accelerating. Every
time Rate of Change reaches a new low, the downtrend is
still accelerating.
When the direction of Rate of Change changes, without
having set a divergence already, then be prepared for a
reversal.
You can use Rate of Change to catch large trends, for this
purpose use a longer time frame. If you want to spot
changes in the trend quickly, then use a shorter period for
Rate of Change.
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When the direction of Rate of Change changes, the pattern
could be the third of a C wave or the third of a five wave. A
small correction will take place to form the 4th wave. The
fifth wave still has to develop in the same direction of the
trend. When this fifth wave is underway, you can cover your
shorts or sell your longs.
Again a divergence is one of the most powerful signals,
which normally occurs in every five-wave structure. The
bigger the divergence, the sharper the reversal can be.
If Rate of Change fails to make a new high or low, this could
be a C wave or a five-wave structure, which depends on the
wave structure of a larger degree.
If you can recognize five waves in a C wave in a larger
trend, which points to the opposite direction, and at the
same time Rate of Change makes a lower top or a higher
low, it is better to close your (trend following) positions at
once. After a C wave the reversal could be quite sharp. On
the other hand, if the larger trend is still up, this only could
be wave 3 with waves 4 and 5 to follow. Here you could
hold on to your positions depending on the wave degree
you have determined. In a larger degree a bigger reversal
can be expected, making it worthwhile to exit. Later on you
could possibly reenter at a better price.
You can also draw trend lines or channels to identify
support and resistance in the indicators. Usually Rate of
Change breaks through its resistance a long time (relatively
speaking) before prices do.
Elliott Oscillator
This indicator is very useful in counting waves. It was
discovered by Tom Joseph in 1987 and named the Elliott
Wave Oscillator. Additionally a moving average of the Elliott
oscillator can be drawn, normally a 5-period MA is used,
which is the (red) line in the Indicator Pane in the picture at
the next page.
The pattern this oscillator produces has a strong correlation
with the trend patterns of the Elliott Wave Principle. For
example the 3rd wave mostly is the strongest wave. At this
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point generally the Elliott Oscillator shows the highest value,
thus confirming a 3rd wave.
The Elliott oscillator works in all time frames, provided you
have enough periods or bars available in your price chart. In
order for the Elliott Oscillator to produce reliable values your
price chart should at the minimum contain 100 bars.
If you work with intra day data, you can zoom in on each
wave to check the pattern of the Elliott Oscillator, as long as
enough detail is available.
Formula
5-period MA - 35 period MA of the (High + Low) / 2
Trading the Elliott Oscillator

A divergence between the Oscillator and prices indicates a
trend reversal. When the market has set new lows but the
Oscillator does not, you have probably found wave 1 in
Elliott terminology.
When you spot this divergence you could do your first trade
and buy the market. At this juncture risk is high, so watch
18
the market closely. Always sell when the market reaches a
new low, since this could be the beginning of a renewed sell
off.
Next a correction will take place, which is wave 2. Neither
the market will reach new lows in wave 2, nor will the Elliott
Oscillator.
If wave 2 is complex, the oscillator will pull back to zero. A
simple wave 2 on the contrary will hardly affect the
oscillator. When the oscillator reaches zero you could buy
again to profit from the coming 3rd wave, on the condition
that the pattern of supposedly wave 2 is corrective (when it
shows a lot of overlap and not a 5 wave)
Then the market will build wave 3, normally the strongest
price movement. Both the indicator and the market will
reach new extremes. As soon as wave 3 has gone beyond
wave 1, the market will accelerate sharply.
The oscillator does not provide for an exit point in this time
frame or wave degree, so you have to look at the sub wave
of this wave degree. If you detect a divergence between
sub wave 3 and wave 5 of the main 3rd wave, you have
found your exit.
After wave 3, again a correction will take place in wave 4.
Notice that wave 4 will be complex if wave 2 was simple
and vice versa. Normally (90% of all 4th waves) the
oscillator will at least retrace to zero in wave 4.
As long as the oscillator does not retrace more than 138.2%

of the wave three peak, the correction is considered to be
wave 4. If it retraces more prepare yourself for a decline,
since there is a strong probability that the price rise was a
corrective three wave in a contra trend price movement.
When the Oscillator reaches zero you could enter the
market again to profit from wave 5, on the condition that the
pattern of wave 4 was corrective.
Most of the time the market will make new highs in the 5th
wave, but the oscillator won’t come near its top in wave 3.
This divergence is a strong sell signal, on the condition that
the pattern of the 5th wave is complete.
If both the oscillator and the market make new highs, you
will have to relabel the 5th wave to wave 3!
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In addition it could be of importance to monitor the
crosspoints of the Elliott oscillator and the moving average
line, since it could be an early warning of a trend reversal.
Time Fibonacci pane

Fibonacci time clusters can be detected easily using the
TIME CLUSTERS indicator, which you can find in between the
other indicators. Select Insert from the main menu and next
New indicator pane. Now the following dialog box will
come up.
Select TIME CLUSTERS from the left and press the ADD button.
Click OK to display this indicator in a separate pane above
the chart as shown in the following example.
20
We have inserted a vertical line where “resistence in time”
is expected to be met. At this point in time the most
Fibonacci price relationships clearly cluster, because of the
highest bar in the Time Clusters indicator pane. Therefore a
reversal, up or down, can be expected at this point.
In this example it will be a rather short term reversal in view
of the fact that only a short time frame of around 20 days
has been analysed.
Please note that ELWAVE will only analyze waves that are
visible in the price chart window. In order to analyze a larger
time frame zoom out the chart and new calculations will
appear.
Warning: neglect the first 3 bars of the Time clusters.
The farther away important clusters (=high bars) appear,
the more important.
21
How does it work?
In the price chart window you see green, red and blue
waves, which depict different wave degrees from large to
small. For each wave degree projections are made using
Fibonacci ratios and projected in the future. The more the
Fibonacci projections cluster on a specific time period in the
future, the higher the bar in the indicator pane will get.
Adjusting settings of Time Clusters
You can adjust the settings by double clicking on the TIME
CLUSTERS indicator pane, just like all the other indicators.
The following dialog box will appear:
It is advised to use the settings as displayed, which works

most straight forward. The PATTERNS BASED checkbox only
works when an automatic analysis has been completed,
since it uses the patterns found by the automatic Elliott
engine. Because of the many more or less duplicate
alternatives that will be found, we advise you to use the
FILTER BASED setting.
Additionally you can instruct the software to calculate
projections from highs to highs, lows to lows and so on. At
the right in the lower half of the TIME CLUSTERS PROPERTIES dialog
box you can fill out the Fibonacci ratios, you would like to
have calculated.
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SCANNING
The scanning module now has combined the previous

versions and includes the SCANNING PROFESSONAL. This
chapter elaborates on the features of the Scanning module,
please see the GETTING STARTED manual for your first
encounter with this module.
1. First steps using Scanning
Choose View from the main menu and select Scan

Inspector. Alternatively press CTRL-S. The dialog box of
the SCAN INSPECTOR will appear immediately as shown below
If you are using the SCAN INSPECTOR for the first time, use the
predefined list to define the items to include in the scan lists.
Please note that you can make as many scan lists as you
like. Select the EDIT button next to SCAN LIST in the upper left
corner to add items to your list
The following SCAN LIST dialog box will appear:
23
Select the NEW button, which will make appear another dialog
box to input the name of the list you would like to make;
Press OK and next the ADD button from the SCAN LIST dialog
box to add items to your scan list and repeat this process if
you would like to add more lists.
Cruise to the directory that contains the data files of the
items you would like to include
Select the items to include, please note that you can add
multiple items by using the special Windows SHIFT and CTRL
key combinations. Select the first item on top of the screen in
the Open dialog box, scroll down to the last item and select it
while keeping pressed the SHIFT-key to select all items at
once.
24
Press the OPEN button to return to the SCAN LIST dialog box or
Press the CLOSE button to return to the SCAN INSPECTOR dialog
box. Select the EDIT button at the RIGHT upper corner that
belongs to Conditions.
Now the EDIT SCAN CONDITIONS dialog box comes up, where you
can define the criteria to scan for. Below you will find an
example:
25
Press the NEW button to name your conditions set and start
entering criteria by moving the mouse to the field you would
like to specify.
Select CLOSE once you have finished entering criteria, which
will return you to the SCAN INSPECTOR dialog box. Please note
that if you check the box Wave degree independent that as
in the example above any 3 consecutive positive found will
match the criteria no matter on which wave degree it starts.
Now you can Press the SCAN NOW! button to start scanning
your list for the criteria selected.
2. Scan Inspector
The SCAN INSPECTOR facilitates searching for specific
investment or trading opportunities that comply with the
criteria you have specified. So if you are looking for stocks
to buy or sell, just specify the conditions and ELWAVE will
find it for you.
To start the SCAN INSPECTOR choose from the main menu View
and next the menu item Scan Inspector or press CTRL-S.
THE SCAN INSPECTOR dialogue box will pop up in which you can
specify which list of items to research and which conditions
to use.
Scan list
In the left upper corner you can select in which list of stock
to scan for the specified conditions. Click on the drop down
26
box or down arrow to show all available lists and select the
desired list with a left mouse click. If you would like to
change or create a list, press the EDIT button next to the
drop down box. Create a new list by pressing the NEW
button, fill out a name that describes the list accurately and
cruise to the directory where you can find the data files.
This is also explained in the First steps section.
Scanning Conditions
In the right upper corner you will find the condition sets, that
contain either predefined conditions or your own criteria.
Click on the drop down box or down arrow to show all
available CONDITION sets and select the desired CONDITIONS with
a left mouse click. If you would like to change or create a
CONDITION set, press the EDIT button next to the drop down
box. Create a new Condition set by pressing the NEW button,
fill out a name that describes the list accurately. Now the
EDIT SCAN CONDITIONS dialogue box will pop up, which is
explained in a separate section. For maximum convenience
we have predefined important CONDITIONS, so normally you
could skip defining your own conditions sets.
Analyse in scanning (Batchprocessor)

Press the ANALYSE button if you have not yet analysed the
items in your list or if you would like to update the analysis
Attention: because new data has been added to your data files. The
Please note that following BATCH PROCESSOR dialogue box will show up:
we have already
predefined the
most interesting
conditions to
scan for.
Especially the
“all negative” or
“all positive”
conditions are
very straight
forward to use.
27
Batchprocessor (Scanning version)
Automatically the active list will be used for the items to
analyse. Again this list can be edited or a different list can
be selected.
Under the list name you will find the items that are included
in the list. At the right you will find the status of the
batchprocessing, which will be updated in real time.
Actions to perform
When
Here you can tell the software to always reanalyse the data
file, even if you already analysed it one minute ago. That
way you will be sure that new data is included in the new
analysis results. On the other hand, you could specify that
the analysis should not be older than for example 1 day. If
the software finds out that the analysis is already up to date,
it will skip the analysis and go to the next item.
How
In this section you can instruct the software to do an “Entire
analysis” or to “Update the analysis”. We recommend to do
an Entire analysis.
Entire analysis will always give the most complete results,
but takes longer to complete. Normally there is not much
difference between the two, unless an important top or
bottom has just been set, which was not yet known in the
previous analysis. Please remember that Update analysis
28
builds on a previous analysis which did not yet include the
last price action.
Other batchprocessor options
Save analysis
Check this box if you like to save the analysis in a scenario
file. Please remember you need a lot of disk space to save
all scenarios. One scenario could take up as much as 1
megabyte, so if you analyse 100 stocks, you will need 100
megabyte! If you do not check this box, ELWAVE will only
save the SUMMARY INSPECTOR results.
Print chart
If checked, ELWAVE will automatically print the chart, so
you will not need to load every analysis to inspect the chart
further
Print Target clusters
If checked the Target clusters will also be printed in the
chart.
Location
Press this button if you would to change the location where
the analysis or scenario files are stored. Normally you could
leave it where ELWAVE stores it by default.
Run analysis in background
Most convenient way to run the batch processor, unless you
would like to see how ELWAVE is analysing the list.
Maximum simultaneous analyses
You could specify more than one instance. This will speed
up the analysis if you use Windows NT with multiple
processor systems.
Start
Press this button to start the batchprocessing
Stop
Press this button to interrupt the batch processing
Close
When the batch processing is finished, press this button to
return to the Scan Inspector
SCAN NOW!
Press this button when you have selected the list and
conditions set to get those items you would like to find. The
list will be scanned very quickly, even if it is a list of
29
hundreds of stocks. Since the scanning will take little time,
you can conveniently try several condition sets to search for
trading opportunities.
Scanned-accepted-rejected progress indicator

Here you can monitor the progress of the scanning
Accepted
Items that comply with the conditions are presented in this
tab. Press on the tab to see the items.
Rejected
Items that are rejected are presented in this tab. Press on
the tab to see the items. You can easily toggle between
accepted and rejected items.
Open chart
Select an item in the ACCEPTED or REJECTED tab and click on th
OPEN CHART button to display the chart of the selected item
quickly. If a scenario file has been saved, the analysis will
be displayed too as well as the SUMMARY INSPECTOR. If not, only
a chart will be displayed.
Check the Save analysis checkbox in the Batchprocessor
dialogue box to automatically save the analysis.
Show details
Press the SHOW DETAILS button to display the SUMMARY INSPECTOR
of the selected item. If necessary, use the scroll bars to
display all contents. Click on another item to show its
analysis results.
30
Explain
Pressing the EXPLAIN button invokes the EXPERT ADVISOR that
will tell you in plain english the analysis results.
Wave( information in the Summary Inspector)

Now the SUMMARY INSPECTOR shows the detected WAVE on
multiple time frames that most likely is in progress in a
separate column. (the % probability is added to this wave
column). The wave that has the highest probability is shown
in the WAVE column. Only Wave 5 is an exception. If Wave 5
scores more than 30%, it is already displayed as the most
likely wave. Because wave 5 in general is less likely to get
many signals, a percentage of more than 30% is already a
very high percentage.
Please note that the WAVE column is a tool, which gives an
indication of the most likely wave not a sure forecast. If a
wave 5 is indicated, still a wave 3 could be in progress.
Therefore it is recommended to get more confirmation, if
needed.
31
Sort in scanning
Under the ACCEPTED or REJECTED tab you will find three drop
down boxes that can be used to sort the items on several
criteria. First of all, this has nothing to do with scanning
conditions, it will just sort the results differently. You
will have to specify the wave dgree as well as the trend first,
before selecting a criterium.
For example, you have specified as Wave degree “Cycle”
and as Trend “Up” as well as to sort by “Reward”. Now
ELWAVE will look at the Cycle Wave degree, screen the
UP (!) alternatives and sort on Reward.
By default the software will present the results sorted on

“Name”.
Normally you will set the contents of the “up” or
“down” drop down box to the same trend you have
scanned for. You are free to change this but it makes little
sense to sort on “down” and “Reward” while the Accepted
results contain a selection of items that are in een up trend.
Easy to use Predefined scanning conditions sets

3 positive all degrees
These conditions are simple but effective and do not require
any Elliott Wave knowledge. If the EASI of all wave degrees
are “positive” it means that 3 consecutive wave degrees
support eachother showing the same direction, which is a
strong uptrend. On all wave degrees even the most
32
conservative targets have not yet been reached. Please
note that the MODERN rules will give a very early “positive”
reading compared to the CLASSIC rules. Therefore, for less
aggressive or novice investors, the CLASSIC rules are
recommended.
3 negative all degrees
These conditions are simple but effective and do not require
any Elliott Wave knowledge. If the EASI of all wave degrees
are “negative” it means that every wave degree supports
eachother showing the same direction, which is a strong
downtrend. On all wave degrees even the most
conservative targets have not yet been reached. Please
note that the MODERN rules will give a very early “negative”
reading compared to the CLASSIC rules. Therefore, for less
aggressive or novice investors, the CLASSIC rules are
recommended.
Searching for a Wave

The most requested feature is to search for a specific wave.
In fact, a potential development of wave 3 is the most
interesting condition to look for. The reason is simple: Wave
3 normally shows the longest movement as well as the
strongest acceleration, while the risks are relatively lower of
a gap occurring in the other direction.
With this in mind Prognosis has developed a very easy way
of finding items that have a high probability of being in a
specified wave.
This has largely been preprogrammed. The software
automatically combines several wave degrees to find the
designated wave. You can use the Wave detection drop
down for quickly finding wave 3’s, however this can be done
even more precise by defining the exact wave degrees and
optionally specifying other criteria. Anyhow, the most
obvious conditions sets have been preprogrammed for ease
of use.
33
Other selection criteria
In the Scanning End-of-Day you can scan for other
conditions as well, which you are free to combine with
previously mentioned Wave conditions.
EASI
The EASI can have 3 values for every wave degree; positive
Postive neutral (p/n)
negative
Negative neutral (n/n).
If it reads neutral on a wave degree, the most likely target
has been reached, which could be the case in an up trend
or in a down trend. This doesn’t mean that the price could
not travel further up or down, but it could be late or more
risky to trade.
If it reads positive in an up trend or negative in a down
trend, we can still expect a further price movement in the
direction of the trend. Therefore it can be very useful to
additionally scan on the EASI.
Trend
In this field you can specify the following conditions:
34
Up only
The Summary inspector must show an up trend only. If it
displays an up as well as a down trend it will not be
selected if entered in the trend field.
Down only
The Summary inspector must show an down trend only. If it
displays an up as well as a down trend it will not be
selected if entered in the trend field.
Up
The Summary Inspector must at least show an uptrend, but
it could show a down trend as well.
Down
The Summary Inspector must at least show a downtrend,
but it could show an uptrend as well.
Long
This is not a specified condition on the trend, but required if
you would like to scan EASI, TARGET %, REWARD and R/R in
uptrends. So if you for example would like to scan for R/R in
an up trend, you have to specify long as well. LONG will NOT
require an up trend, it will just look for the R/R specified!
Short
This is not a specified condition on the trend, but required if
you would like to scan EASI, TARGET %, REWARD and R/R in
down trends. So if you for example would like to scan for
R/R in an uptrend, you have to specify long as well. LONG will
NOT require an up trend, it will just look for the R/R
specified!
Abs. % (min)
Here you can define the minimum percentage that the price
has to rise or decline according to the Target as specified in
the SUMMARY INSPECTOR.
Reward (min)
Here you can define the minimum reward, which is
specified in points, as displayed by the SUMMARY INSPECTOR.
This is useful if you would like to exclude very small price
movements or are looking for more active trades of for
example minimally 5 points.
35
R/R (min/max)
In this column you can specify the RISK/ REWARD you are
looking for. Very small or negative R/R are generally not
interesting, therefore we would recommend to set the
minimum to 1. Very high R/R are not reliable, because it
could have been based on a risk that is very small.
Therefore, a higher R/R than 10 is suspect.
Now with the Scanning professional included several
important extra features are available.
• It allows to scan intraday files, provided you have the
intraday module, thus looking for shorter term trends in
trends, which is a very important feature for day traders.
• The Conditions matrix has been enhanced
considerably.
• You can look for a Wave 3 or a Wave C as well as a
Wave 2 or Wave B.
• Criteria can be specified for Risk, Target, Exit
• The waves can be specified individually on
multiple timeframes. Herewith you can exactly
define what you are scanning for. Looking for a
wave 2 in a wave 3 in a wave 3? No problem…
36
• A minimum percentage for a specified wave can be
defined in the MIN% WAVE column. By default the
software displays wave 5 if 30% of the wave
Please note that
you may NOT detection signals produce a wave 5.
find However, as soon as a small percentage of
corresponding say 10% indicate a wave 5, the up trend
wave information could get weaker. By specifying Wave 5 and
in the Summary a minimum % of 10%, ELWAVE will show all
Inspector. To find items where a wave 5 starts to emerge,
the wave which could be an early warning signal.
percentages you
can use the Sort
feature in the
Scan Inspector
dialog box
• Additionally you can make more complicate

scanning templates by adding multiple templates
that work together. Press the ADD, OR or NOT button
to add such a template.
It is possible to add the following:
• AND conditions
Press the AND button in the EDIT SCAN CONDITIONS dialog
box to add a second condition template.
Here you can specify other conditions that should be
satisfied during the scanning. For example, if you
would like to scan for items that are in its “neutral
phase” which precedes a possible acceleration, you
specify in the first template under EASI “neutral” and
under trend “up” and in the second template under
EASI “neutral” and trend “down”
37
• OR conditions
Press the OR button in the EDIT SCAN CONDITIONS dialog
box to add a second condition template. Now only
one of the conditions templates need to apply in
order for the scanning to select items.
Here you could for example specify that you would
like to find items that are in a wave 2 or a wave 4 of
the Intermediate trend (and in wave 3 of the Cycle
and wave 3 of the Primary, see condition set “wave
2 or wave 4 in uptrend, medium term”). Or you
would like to find items that are in a wave 3 or 5 and
so on.
• NOT conditions
Press the NOT button in the EDIT SCAN CONDITIONS dialog
box to add a second condition template. Now you
can specify to exclude items that meet certain
criteria. For example, you would like to find items
that are in wave 3 but who have no wave 5 signals
38
at all (see condition set “wave 3 but no wave 5
signals, up, md.term).
• The SORT function in the SCAN INSPECTOR dialog box has
been extended considerably.
Additionally you can sort on wave information as
well as all other column information displayed in the
EDIT SCAN CONDITIONS dialog box, see the screen print
below.
39
ANALYSIS RESULTS EXPLAINED
The Price Chart window

In the expert layout, to be found under the Analyse menu,
the price chart window is presented at the right of the
screen, the WAVE INSPECTOR in the middle and the WAVE TREE at
the left. It contains the charted price data, the wave labels
that have been inserted by ELWAVE and the automatic
channels.
In the example below an analysis of 100 years of Dow
Please note that Jones data, 3 wave degrees or time frames are displayed.
the SCENARIO Every wave degree has a different color, all related objects,
main menu item, such as channels, target bars, have the same color. TARGET
which still shows BARS are displayed as vertical lines, representing the minimum
in the screen and maximum expected target of the selected pattern and
shots, now has wave count. The small diamonds represent the average
been named
CHART
targets, which correspond with the information in the SUMMARY
INSPECTOR (see below). For easy recognition, these diamonds
inherit the color of the wave degree or time frame to which
they belong. The same goes for the triangles that represent
the exits.
40
The Toolbars
On top of the screen, just underneath the main menu,
toolbars are displayed The OBJECT toolbar or Chart objects
contains buttons for inserting channels, trend lines, time
rulers,
spirals and trigger lines. Using the mouse you can drag it
into the chart and release it at the required spot.
The WAVE LABEL toolbar, which by default, lists the

“Supercycle” wave labels, can only be used when
determining your manual wave count. The setting of this
toolbar to a specific wave degree has no impact when using
the automatic Elliott Wave analysis.
41
The following toolbar from left to right lists the SAVE, PRINT,
ANALYSIS, EXPERT ADVISOR, TARGET ZONES and SCAN INSPECTOR
buttons.
The SYMBOL toolbar is used for retrieving a chart immediately

without invoking the menu. Just type the Symbol and press
ENTER
The Wave Tree
Before you use

the WAVE TREE it The WAVE TREE is a tree-structured representation of the first
is highly Elliott Wave analysis that is displayed in the chart. It is
recommended to displayed at the left of the screen. On top of THE WAVE TREE, two
set compression buttons “PREVIOUS” and “NEXT” can be found. Clicking these
to Automatic, buttons will only affect the highest wave degree and scroll to
otherwise the the next or previous Elliott Wave alternative. To take a look at
software will not alternatives from lower degrees, click that particular WAVE
be able to present BUTTON and click the right mouse button and scroll the
the entire wave alternatives.
selected in the
WAVE TREE
The WAVE TREE itself is composed of WAVE BUTTONS, each of
them represent a wave in the chart, which in fact is a small or
large trend or correction. Together, a group of WAVE BUTTONS
build a higher wave degree of a larger time frame.
42
The WAVE TREE shows how the
patterns in patterns are related to
eachother, which is the same as
subdirectories in directories…
Clicking a WAVE BUTTON, that displays a wave label, will show

that particular wave with the required wave detail, all of its
channels and other connected objects.
The small + or - buttons make the WAVE TREE expand or
collapse. If you press the + button, the underlying patterns
that consist of several waves, each represented by a
separate WAVE BUTTON, will be displayed. By expanding the
WAVE TREE and selecting lower level waves, you can navigate
as deep down into the wave structure as you like. This will
show which patterns ELWAVE has found. The patterns
found are listed at the right of the WAVE BUTTON.
The most interesting Waves are the unfinished waves,

which can be recognized by the gray cross in the WAVE
BUTTON. Obviously a correct forecast of the pattern in an
unfinished wave is the key to forecasting markets or prices.
In the event of a red cross appearing in the WAVE BUTTON,
the patterns in this wave or in the underlying waves are
either not found or are not allowed.
If the Trading signals module is included, double clicking a

WAVE BUTTON will show the trading signals identified for the
pattern under inspection.
43
The WAVE TREE shows how the
patterns in patterns are related to
eachother, which is the same as
subdirectories in directories…
At the left in the SIGNAL INSPECTOR the trading signals are listed
together with the critical price level. At the right the patterns
that share this signal, are listed. At the bottom the
description of the rule, on which the trading signal is based,
is displayed.
44
Trading signals in ALL CAPS already have been triggered,
while Trading signals in lower case have not yet been
activated, because their critical price level has not been
reached. There are four signals:
• Entry, to enter a position, which is a buy or sell
indication depending on the trend.
• Exit, to exit a position, which is a buy or sell indication
depending on the trend.
• Confirm, this is an alert that the trend has been
confirmed, depending on your strategy this can either be
used as an entry or an exit.
• Recalc, if this price level gets penetrated, ELWAVE will
update the analysis because a critical price level has
been broken, this price level will coincide with some
other signals.
Use the scroll bars at the right side of the WAVE TREE window
or at the bottom to scroll the tree.
Clicking on the pattern will

show a text book example of
the pattern in the chart…as
well as its target bar…
As shown in the picture below, clicking on the WAVE BUTTON

(or pattern) in the WAVE TREE displays this wave in the price
chart, the SWING FILTER (light blue line), a text book example of
an impulse pattern and connected TARGET BARS.
45
The Wave Inspector
The WAVE INSPECTOR provides a lot of additional information on
the pattern under inspection. It is not necessary to inspect
this information, nevertheless it could be a valuable tool in
your trading. Certainly it will teach you which rules and
guidelines determine the patterns.
The WAVE INSPECTOR will always display information on the
pattern that has been selected, as in the following case,
where the pattern Impulse has been highlighted in the left
list box on top of the WAVE INSPECTOR.
Description of the
pattern under
inspection…
At the left the still validated patterns are listed, at the right
dismissed patterns are listed. If you choose one of the
dismissed patterns, you will notice that at least one of the
rules of the pattern has been violated and checked by a red
cross. Use the scroll bar at the right side of the WAVE
46
INSPECTOR windowto see more. In the following pictures we
have shown available information.
The Score
Here you will find how high

this pattern scores according
to the 5 factors as listed.
Highest scoring patterns are
ranked first…
The internal structure of the pattern.
Green checkmarks if it has been

validated. This means that the
waves of this pattern contain
patterns that are allowed to occur!
This is very important in a true
Elliott Wave model…
The score, on top in bold, in the WAVE INSPECTOR is the total

score, which is used to rank the alternatives.
47
Fibonacci ratios of the pattern.
Here you can find all Fibonacci,

time as well as price ratios, if they
exist. ELWAVE will automatically
recognize all ratios…
The better the Fibonacci ratios, the better the Elliott Wave
analysis.
The Rules
A green checkmark if validated,

a red cross if violated as in
dismissed patterns…
Clicking on the rules and guidelines in the WAVE INSPECTOR will

display the critical price levels, where the rules or guidelines
become violated, in the chart.
48
The guidelines
The same as with rukes, but

violated guidelines do not
invalidate a pattern, but make
it less likely…
The Summary Inspector
The SUMMARY INSPECTOR probably provides the most important

and concise information, eliminating the need to be an
expert Elliott analyst. Using this information, will give clear
indications on how to trade and when to enter or exit
positions.
Apart from the SUMMARY INSPECTOR it is recommended that you

take into account other information and use other tools as
well, so as to make the best trading decision as possible.
Wave information in the Summary Inspector
Now the SUMMARY INSPECTOR shows the detected WAVE on
multiple time frames that most likely is in progress in a
separate column. The wave that has the highest probability
is shown in the WAVE column. Only Wave 5 is an exception.
49
If Wave 5 scores more than 30%, it is already displayed as
the most likely wave. Because wave 5 in general is less
likely to get many signals, a percentage of more than 30%
is already a very high percentage.
Please note that the WAVE column is a tool, which gives an
indication of the most likely wave not a sure forecast. If a
wave 5 is indicated, still a wave 3 could be in progress.
Therefore it is recommended to get more confirmation, if
needed.
Other information
By default, the SUMMARY INSPECTOR is displayed at the bottom
of the screen. The column headed EASI is the main indicator
to watch in combination with the R/R (risk-reward)
parameter. As long as the AVG R/R is above zero the EASI
column will give a positive or negative indication, depending
on the trend. If the AVG R/R turns negative, the EASI will
become a “neutral”.
If all time frames display the same signal, either a “Positive”
or “Negative” and the AVG R/R is above 1, then expect an
acceleration in the direction of the trend, provided a large
price movement has not yet taken place. A risk-reward of 2
or more is very favorable as long as this is not caused by an
extremely small risk in the RISK column.
Should ELWAVE , for example shows a “Positive” on every
time frame, at some point the EASI column of time frames
(the smallest time frame first) will change to “Neutral” as
soon as the TARGET has been reached. As said before,
TARGETS are displayed in the chart by diamonds, while EXITS
are displayed as small triangles. Both TARGET and RISK are
reported in points.
Normally a “Neutral” signal means you can still hold on to
your positions. Should the smallest time frame change to a
“Negative” or the EXIT POINT, as listed in the SUMMARY INSPECTOR,
is penetrated, you have an aggressive signal to exit your
positions, depending on your trading strategy.
If the EXIT level is penetrated this does not automatically
mean that the position should be abandoned, especially if
the EASI still reports positive (Negative in down market) or a
50
hold. Consider penetration of the EXIT LEVEL to be the first
warning signal of a possible reversal, which has yet to be
confirmed. In Elliott terminology the stop of at least one
alternative has been hit, invalidating this scenario, but other
alternatives could still be possible.
In the event that all alternatives have been invalidated
because all their exits have been triggered, the SUMMARY
INSPECTOR will show a change in the TREND column and /or the
EASI column.
These time frames, as highlighted in the picture, show the

relative order of the trend within a trend or the pattern within
a pattern that ELWAVE has found automatically. Time
frames of the same degree normally do not exactly have the
same duration; they are dynamic in nature.
Time frames
At the left of this window at least 3 time frames or
wave degrees are shown…These time frames
represent consecutive patterns in
patterns…ELWAVE will find the relevant time
frames or wave degrees all by itself, taking into
account that they are dynamic and that their
duration is not fixed …
51
The lower listed TIME FRAMES (or wave degrees) in the SUMMARY
INSPECTOR are smaller trends in a larger trend (or the higher
listed TIME FRAME). Therefore an Intermediate time frame is a
smaller trend in the Primary and so on.
Note that a wave degree as listed in the SUMMARY INSPECTOR is
not related to the duration of the wave degrees as normally
defined by the Elliott Wave Principle, which definitions are
only tendencies, not fixed and exact.
RISK shows the number of points you risk if you adhere to
the exit in the EXIT column. REWARD shows the number of
points one should achieve if the target is reached.
R/R is the ratio of reward to risk.
Reward
The average reward of all underlying,

validated patterns is calculated in points…
Normally this is the minimum target the market
has to reach, normaly higher targets are quite
common…
52
AUTOMATIC ANALYSIS ─ INTERPRETATION
1. General
ELWAVE will label the preferred wave count and display it
in the price chart. Using the WAVE TREE you can inspect other
wave counts as explained below. Alternatives that contain
very little detail should be dismissed, if they appear at all.
You will notice that alternatives are ranked according to
their probability, taking into account the probability of the
occurrence of a pattern, the Fibonacci ratios, the scores of
the sub patterns and so on. A more detailed description can
be found under the experts’ section.
If most alternatives, that remain with respect to the same
time frame (every wave degree is a time frame!), indicate
the same price direction, we have a strong probability that
prices will move in the direction of the forecasted trend. In
case - with respect to the same time frame- half of the
alternatives indicate rising prices and half of these predict
lower prices, obviously there is no interesting trading
opportunity at hand.
Still you might want to inspect thoroughly the different

alternatives that are available, although the outcome of the
SUMMARY INSPECTOR should not been neglected. You can
inspect alternatives on every wave degree level by clicking
with the right mouse button on the WAVE BUTTON. A dialog box
will appear where you can select
the previous and next alternatives. The alternative that has

been numbered 0, has the highest score. It is stressed that
unfinished, usually extended waves, can not (yet) have the
highest score, because relatively fewer data is available
compared to finished waves. Obviously finished waves, for
53
example, could contain more Fibonacci ratios and therefore
have a higher score, while the unfinished wave will only
achieve a higher score when it is completed. However the
unfinished waves are likely to project a very probable
outcome. For experts, it could be considered to sub label
every LAST unfinished wave, of all unfinished waves as
deep as possible to see if the alternative still holds and how
it scores. Do the same with other alternatives and compare
the outcome.
On completion of an automatic analysis select the last
unfinished wave in the WAVE TREE and choose Analyse
Selected Wave from the Analyse menu, where you add
one or two wave degrees.
Just take a look at the example in the Targets section
following, to get the general idea.
Alternatively you can insert the main wave labels yourself
and start from there generating an unfinished wave every
time, using Analyse Selected Wave. See the Experts
information section.
Additionally, you could try the different Analysis options to

compare their results. The more detailed the results the
fewer counts will be available.
Please note the following. In general a detailed chart, which
shows the most labeled wave degrees, without incurring an
internal wave structure violation, is the most probable
outcome. If there are other, less detailed alternatives, try to
analyze these further down (more wave degrees) step by
step.
If the analysis comes up with a finished wave as the most
probable outcome, always examine if there is an unfinished
alternative and compare the wave detail, scores, as well as
the sub scores that these scores are composed of.
Furthermore the software will generate the following:
• a list of alternatives, the main alternatives of the
highest wave degree can be scrolled by using the
buttons right above the WAVE TREE, click on the button
and the wave analysis will appear in the chart window.
• a summary of results of a pattern in the WAVE INSPECTOR.
54
• the most probable targets based on Fibonacci ratios,
taking into account that targets differ for each pattern
and each wave within a pattern, see below.
• a path of expected price action for the pattern under
investigation. By selecting the pattern in the WAVE
INSPECTOR, ELWAVE will show the pattern (using the
color of the wave degree), the TARGET BARS (using the
color of the wave degree) and the SWING FILTER in the
chart (the light blue line). The pattern also projects the
most likely target, each wave will reach, based on the
ratios of the already completed waves within the
pattern.
Additional information on the Elliott Wave engine can be

found in the chapter Manual Wave Count.
2. Targets
As mentioned before, targets will be automatically displayed
when a chart has been analyzed, either by choosing
Analyse entire chart, Analyse selected wave or Check
wave count, provided you have switched on the display of
targets in the WAVE INSPECTOR options. Only targets of
unfinished or incomplete waves are projected! These
unfinished waves, are displayed as a gray cross in the WAVE
BUTTONS of the WAVE TREE.
The targets are represented in the TARGET BAR, which
displays the expected range of the pattern or wave count
that is displayed in the price chart, as a vertical line. These
targets refer to the wave count that is labeled in the price
chart, while targets in the Summary Inspector are an
average of the targets of all alternatives.
55
Target
bar
On these vertical lines you will notice small horizontal lines,

which are the most probable targets, based on the
Fibonacci price relationships. The positioning of the target
bar at a specific point of Time on the X-axis is not relevant.
If 5 wave degrees are unfinished as in the example
depicted above, 5 target bars will appear, each in the color
of their respective wave degree.
The more these target bars converge on the same range
and cluster of targets, the more likely the targets will be
reached. Of course, targets can still be inserted as before
by selecting a wave label- provided you have converted
your analysis to manual wave labels (see Analyse menu)-,
clicking the right mouse button and choosing Quick
targets.
ELWAVE will insert channels automatically in a smart way,
depending on the progress of the pattern.
3. Experts information
If you are a novice to the Elliott Wave Principle and choose
not to acquire a deeper knowledge of the working of the
Elliott Wave Principle, we advise you to skip the following
section. For more information see the chapter called “Elliott
Wave Principle”. In this chapter, we list all standard patterns
56
as well as the patterns we consider to be valid to our MODERN
RULES definition.
Elliott Wave model

In the following we give further information on the Elliott
Wave model used to generate an analysis automatically.
First of all we would like to emphasize that our software
uses a true Elliott Wave model, which incorporates every
aspect as required by the Elliott Wave Principle. The secret
of the Elliott Wave Principle is the patterns within patterns
concept, which is fully supported in the software. We
mention the following:
Fractals
As described in a later chapter of this manual, R.N. Elliott
discovered that price fluctuations and market action are of a
fractal nature. Fractals are mathematical structures, or
patterns, which on an ever smaller scale, infinitely repeat
themselves. The patterns that Elliott discovered are
constructed in the same way. An impulsive wave, which
goes with the main trend, is always composed of five
waves. On a smaller scale, within each of the impulsive
waves of the before mentioned wave, again five smaller
impulse waves will be found. And in this smaller pattern, the
same pattern repeats itself again and so forth.
The fractal nature of these repeating waves enabled us to
program the Elliott Wave model. The repeating nature of
these structures or patterns in prices, which are limited in
number, makes it possible to detect which pattern most
probably applies and thus in which direction the market or
issue is headed.
We have defined all the standard patterns, plus patterns we
discovered in our extensive research and through years of
experience using the Principle (see chapter "the Elliott
Wave Principle"), and these have been implemented in our
“Modern” rules.
57
Basic patterns
The Elliott Wave Principle allows for predefined patterns
only. This means that only a limited number of patterns can
occur in any price charts, with each pattern having its own
unique characteristics.
Meticulously, we have defined all these patterns in our
rules. Using the program, once an analysis has been
generated or checked, you can inspect all the rules and
guidelines that generate to a specific pattern.
Internal structure
Internal structure refers to the internal wave structure or
patterns within a pattern. (Sub)Waves of a pattern may
consist of permitted patterns only! For example an
impulsive wave 3 should never contain a zigzag pattern, if
this occurs the internal structure of wave 3 is incorrect and
therefore the pattern to which wave 3 belongs is incorrect,
and its higher pattern is incorrect and so on…
In the program we have defined the rules for each pattern
and which patterns are allowed for each wave.
For example, the second or B wave of a flat is allowed to
contain a Zigzag, but not a Triangle, while the 3rd or C wave
of a Flat can have an Extension3 but not a Zigzag pattern.
These definitions allow dismissal of non-conforming
patterns.
Proportions
In order to group together waves that belong to the same
degree, thus building a larger degree pattern, the
proportions of the waves are essential.
Obviously waves of the same degree must have
approximately the same objective measurements in time
and / or price. For this purpose we have developed our
proprietary “Fibonacci proportions”, that closely working
together with our proprietary SWING FILTER, which identifies the
major turning points for every wave degree.
58
As an example we give an instance where wrong
proportions are involved resulting in an incorrect wave
count:
Clearly, wave 2 is far too small to be of the same degree as

wave 4. Using such a method of counting waves makes it
possible to come up with every wave count imaginable.
Unfortunately this aspect seems to be very difficult to
assess objectively, even with “expert” Ellioticians. This is
not the case using ELWAVE, which will do an objective and
consistent analysis, recognizing and identifying patterns
correctly as in the example below, where wave 2 and wave
4 really do belong to each other:
Other selection criteria

Furthermore we mention some of the other criteria that
have been incorporated to determine the wave count:
• Waves must have sufficient data points of at least 8 (8
bars or ticks) to make it possible to define a pattern at
all.
• Of the different types of patterns possible in a wave,
only the most suitable pattern will be identified. If for
59
example, in a wave, several impulses and Extension3
are validated, only the best impulse and the best
Extension3 will be listed.
• In an extended wave where a wave 1 and wave 2 is
again followed by a wave 1 and 2 of smaller degree, the
sub wave 1 can be just a little longer than its parent
wave 1.
• Apart from the checks visible in the WAVE INSPECTOR,
several proprietary checks have been implemented to
determine the validity of a wave count.
Calibration
The Elliott Wave analysis engine that is at the heart of
ELWAVE has always been recognized as being the best
around. Now with the 7.0 release of ELWAVE comes a new
analysis engine that is even better than the previous,
providing more detailed and more stringently checked wave
counts than ever. In particular what you will notice is that
wave degrees are now calibrated to a specific percentage
of growth to correlate closely with the magnitude of wave
degrees as defined in literature. Apart from improving the
analysis itself this offers new ways to use the software, in
particular when used in conjunction with the Scan Inspector.
By defining your scanning criteria for a specific wave
degree you can now focus on those trades that concur with
your investment horizon. For those customers who have
incorporated their current ELWAVE version in their trading
system setup it is still possible to switch back to the old
engine to yield analysis results identical to those found by
ELWAVE 6.2.
Ranking alternative wave counts

In order to rank alternatives ELWAVE determines the
probability of the alternatives that have been validated.
Patterns that remain, must have a correct internal structure
and satisfy every rule as defined in all the sub patterns and
waves.
60
The scores or probability of every pattern have a relative
significance. If scores of patterns are more or less the
same (difference of less than 5 points), they should be
regarded as having a more or less equal probability.
A score above 40 should be regarded as a relatively high
probability, while a score under 20 makes a pattern less
likely. Of course these scores can increase as the
pattern progresses.
Every validated wave count gets a score that, among
other factors, takes into account the following:
• general probability of the occurrence of
patterns, for example one of the most
frequent encountered patterns is an
Extension3 (Extension in the 3rd wave).
• probability of the occurrence of patterns
in a particular wave, f.e. a Zigzag in a wave
2 is very common, but less likely in wave 4 of
an impulsive pattern.
• Fibonacci Proportions, the more the waves
have the same measurements, the better
their scores.
• Fibonacci Time ratios, the more the
Fibonacci time relationships fit, the higher the
score.
• Fibonacci Price ratios, the more the
Fibonacci price relationships suit, the higher
the score.
• guidelines, the more guidelines that are
satisfied, the higher the score of a pattern.
• scores of sub waves and sub patterns,
the better the sub waves of a wave, score
on all of the above mentioned aspects, the
higher the total score.
All these requirements have been incorporated in the

program in order to identify the most suitable pattern.
61
Inspecting alternative wave counts
On every wave degree alternative wave counts can be
inspected. The principal alternatives of the highest wave
degree or time frame are listed in the WAVE TREE. In order to
investigate alternatives of sub waves, click on the WAVE
BUTTON in the WAVE TREE and expand the WAVE TREE if
necessary. Next click with the right (not the left!) mouse
button on that WAVE BUTTON and a list of alternatives for this
wave will appear. Selecting one of these alternatives will
display the alternative in the chart.
This can be repeated for every wave that has been listed in
the WAVE TREE. Remember that always the best alternative
on each wave degree will be listed on top.
Nevertheless it is possible that a less probable alternative
wave count or pattern ends up being the one markets are
following.
In the screen dump below (analysis of Dow Jones) the most
probable outcome will insert wave IV at the 1974 low:
62
Select using
right mouse
button to list
alternatives
Unfinished wave V
Now selecting wave (III) with the right mouse button as

indicated in the picture below, will show a list of alternatives
for this unfinished wave.
Multiple time frames

As experienced traders know, each time frame has its own
characteristics such as trend, volatility and momentum as
well as support and resistance areas. The shorter the time
frame that you are able to assess correctly, the earlier you
will obtain signals for the larger trend of which the shorter
trend forms part. Obviously you need to inspect multiple
time frames using a consistent and objective methodology.
That is exactly one of the strengths of the Elliott Wave
Principle provided it is applied correctly.
63
The Elliott Wave Principle always assumes multiple time
frames, since it is composed of patterns within patterns,
where the shorter term patterns give precious information
on the larger pattern in progress, and every pattern from
small to large covers a specific time frame.
64
ELWAVE includes What’s more, using its SWING FILTER ELWAVE will automatically
an Automatic group together waves , that belong to the same time frame,
compression which in Elliott Wave terms are referred to as wave degrees.
option, which is Thus ELWAVE automatically finds the time frames or wave
very convenient to degrees, that are of value in a particular price movement.
se in conjunction Normally a trader has to try multiple time compression
with the WAVE TREE.
settings, from monthly to weekly, daily, hourly, 15 minutes
If you disable
automatic etc., in order to find the time frames that contian the wave
compression the degrees one is trying to find, The wave degrees ELWAVE
WAVE TREE will no will come up with, will show the multiple time frames that are
longer clearly detail in existence for any market or stock. Activating the highest
the attached time wave degree, by clicking on the WAVE BUTTON of the pattern of
frames. largest degree in the WAVE TREE, will show the largest trend or
time frame immediately. Clicking on one of the buttons of
the sub waves of this pattern will present the lower time
frame and so on, down to the smallest time frame found by
the software.
Multiple sessions (not recommended to TRIAL users)

You are allowed to start up ELWAVE as many times as you
like in order to analyse several charts at the same time.
Another important Be aware of the fact that you need enough memory and /or
application of hard disk space to accomplish this and need therefore to limit
multiple sessions is your analyses to a few markets / stocks being analysed at the
to run a separate same time. In addition, computing power has to be shared by
session in order to
different analyses, so it will take longer for the analysis to be
collect ticks from a
real-time feed and completed. Should ELWAVE halt during experimentation, for
use another session instance because of lack of memory, normally the real-time
to experiment and session will still run and you should not have lost valuable
analyse. This data, provided a separate session is collecting intra day data.
enables you to keep Trial users could experience problems with the hardware lock,
on watching the if they start multiple sessions!
markets while a
second session of Analysing intra day charts
ELWAVE analyzes
the latest Intra day charts normally take more time to analyse than daily
information. charts. It is advised to let the automatic analysis handle
updates, using a zero maintenance solution as for eSignal,
otherwise it will be a tedious process. You can speed up the
analysis by not having checked other checkboxes than
65
“indicate retrace on > 50%” in the Analysis options, you can
let ELWAVE analyse the chart again.
Converting wave counts to scenarios

You can convert the selected alternative from the
automatically generated wave counts by choosing Convert
to Wave Count from the Analyse menu. The manual wave
count will appear in a separate chart document. You can
convert to a manual wave count as many times as you like.
In order to save an alternative as a scenario, choose from
the main menu File and select Save as to save the wave
count as a scenario.
Analysis options
You can adjust important variables that determine the
outcome of an Automatic analysis, by changing the default
setup. Select one of the presettings presented.
The following settings are available:
• Pattern definitions
You can choose either the CLASSIC or the MODERN RULES
version. The Classic version adheres to a very strict
interpretation of the Elliott Wave Principle. The setting
below is equal to the Modern rules as in previous
versions of ELWAVE. Unchecking the box “indicate
reversal on > 50% retrace” will select the Classic rules.
66
•
• Analysis Type
By choosing one of the presettings you set the detail of
the SWING FILTER as well as the analysis depth, or number
of wave degrees to inspect. The SWING FILTER will search
for major turning points for every wave degree, grouping
waves of the same degree together.
If you instruct ELWAVE to use a more detailed analysis,
by choosing “looking for more complex patterns” and/or
“extra wave degree”, the SWING FILTER will automatically
find more turning points, revealing more variations of
possible wave counts. By default the SWING FILTER (pale
blue line) will be shown in the chart by clicking on a
button of the WAVE TREE, selecting a pattern in the chart in
the WAVE INSPECTOR and switching it on or off.
Looking for complex patterns
Using this setting a SWING FILTER will carry out a detailed
inspection of patterns, four wave degrees deep, and use
a lot more turning points to examine many more
alternatives..
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Extra Wave degree (version 7.1 and higher)
Enabling this option every 3rd wave, one level deeper,
will be checked for patterns that might be incorrect with
the higher pattern. So if the smallest wave degree has
not been checked internally, this check will verify the 3rd
wave, which leads to eliminating 3rd waves with a
corrective wave. An advantageous side effect is that
one or two wave degrees could be added to the
outcome in the SUMMARY INSPECTOR
Below is text book example of a 3 wave degrees deep

labeling, with wave 3 sub labeled. The pattern is called an
Extension3 since the 3rd wave is extended. The pattern
must consist of 5 waves, which is correct.
• Extra wave degrees in version 6.2 and before

Adjusting this option allows one to automatically add extra
time frames or wave degrees during an analysis. It will
analyse the most recent price data in more detail providing
more information on the smallest patterns within patterns.
The greater the number of extra time frames required, the
more time it will take to complete an analysis.
• Minimum Bars
Sufficient bars or data points must be loaded in order for the
program to recognize reliable Elliott Patterns.
If MINIMUM BARS has been set to 20, the software will return an
undefined pattern if it encounters less then 20 bars in a
pattern.
68
We recommend you set this option to 8 bars for End of Day
charts.
Of course ELWAVE will allow you to adjust the settings in
order to get faster results, detect more complicated patterns
or to produce a more detailed result.
• Automatic analysis when showing blank chart
If this option is checked, ELWAVE will automatically
analyze a blank chart after it has been retrieved in the
software.
• Automatic analysis update
If the option “Automatic analysis update” is checked,
ELWAVE will automatically monitor markets in real time.
4. Analysis Examples
In this section we will provide several examples showing
how to generate an Automatic analysis.
Once an analysis has been generated, the WAVE TREE, the
WAVE INSPECTOR and the price chart with its current wave
count will be displayed.
It is possible to further inspect and analyse any wave count
that has been generated. Click on a WAVE BUTTON in the WAVE
TREE to inspect and display that section of a chart. The chart
will zoom in and display the correct detail automatically. The
WAVE INSPECTOR will provide a lot of information on the wave
or pattern selected. On top at the left, the WAVE INSPECTOR will
show validated patterns and at the right dismissed patterns.
Both can be inspected as you like.
Click on a pattern to display all information in the WAVE
INSPECTOR, a feature that makes the Elliott Wave completely
transparent. The pattern is described, the internal structure
of the pattern is checked, all Fibonacci ratios are presented
and the rules as well as guidelines can be inspected.
Clicking one of these rules or guidelines will detail it in the
chart.
For more information, refer to the next chapter, where WAVE
TREE and WAVE INSPECTOR have been explained in more detail.
69
Analysing Finished waves
Assuming ELWAVE has completed an analysis and, after
inspection of the alternatives produced, you would like to
analyse a wave in more detail. You may wish to analyse the
finished (completed) as well as unfinished (incomplete)
waves, but let us first start with finished waves.
A finished wave is a wave that contains a completed
pattern, of which every wave within the completed pattern
has been found and determined.
In the example below for instance, wave IV has been
approved using an analysis depth of 1, which means only
one sub wave has been analysed. Now suppose we would
like to analyse it in more detail and see if the internal
structure still supports the pattern found. Right below we
have displayed the original count.
Now, by selecting (red) wave IV in the WAVE TREE, we will

again analyse this wave, but now using a step by step
70
approach. Choose from the main menu Analyse and select
Analyse selected wave (1). This produces a more detailed
analysis because not only waves WXY will be displayed,
but also the patterns within each of these waves.
If this is correct also, the chances increase that wave IV
could have ended at the low in 1982 instead of 1974.
The picture that follows shows the results:
As pictured in the WAVE TREE, three valid patterns have been

found, even a nice Triangle wave Y, a very probable way of
completing a WXY combination.
In this manner you can analyse every section of a chart.
Later we will show that you could even choose to insert a
few labels in the chart yourself and have ELWAVE finish the
analysis.
Analysing Unfinished waves

This can be accomplished in exactly the same way as with
finished waves. An unfinished wave is the last wave in
progress marked with a gray cross on the WAVE BUTTON.
Select this wave in the WAVE TREE and choose Analyse
selected wave from the Analyse menu.
71
Using your own wave count
Of course you can label a chart yourself and then have
ELWAVE analyse any section you like, which enables you
to take shortcuts. We will give a simple example below.
Just drop wave (IV) on the low you would like to determine
as the end of wave (IV) and the beginning of wave (V).
Unfinished wave 5
Drop wave
(IV) on the
low of your
choice
The next step is to choose from the main menu Analyse

and select Check Wave count. A WAVE TREE will be
generated, ignore the patterns that appear next to the WAVE
BUTTONs, because these have no added value, since only
one wave label has been inserted.
Now we will analyse the unfinished wave (V). To produce
this analysis, select wave (V) in the WAVE TREE and choose
Analyse selected wave (1) or (2) as explained under
Analysing Unfinished waves. Should you wish to test if
wave (V) is already finished, insert wave V at the current
top, choose Check wave count, select wave (V) in the
WAVE TREE and generate an analysis.
72
3. Signal Inspector
Signals generated will be different depending upon the
CLASSIC and MODERN RULES. The CLASSIC RULES will produce trend
following rules mainly. Therefore whilst these are less risky,
they also will produce signals later. If you would like to have
earlier signals using the CLASSIC RULES, just add extra time
frames by analysing the last unfinished wave in more detail,
by selecting the last unfinished wave in the WAVE TREE and
choosing Analyse selected wave from the Analysis
menu.
Alternatively you can add EXTRA WAVE DEGREES in the Analysis
options.
The MODERN RULES on the contrary are extended, producing

much earlier signals. Therefore you will have to be more
careful and seek for confirmations before entering or exiting
positions. In addition, the same trend following rules, as
available in the CLASSIC version, have been added.
Trading signals of every pattern listed in the WAVE INSPECTOR
can be inspected in the SIGNAL INSPECTOR. The Signal Inspector
window can display a specific wave by double clicking its
WAVE BUTTON in the WAVE TREE with the left mouse button.
Below you will find an example:
73
In the example above we have double clicked the WAVE
BUTTON with the left mouse button. The SIGNAL INSPECTOR has
appeared.
74
The SIGNAL Trading indications that are displayed in ALL CAPS have
INSPECTOR been triggered in the past, while signals in lower case never
window will list have been activated.
the trading
signals for & If you click on one of the listed signals, patterns to
unfinished as well which the trading signals belong, will appear in the
as finished waves, list box at the right as demonstrated in the above
so you will be
example. At the same time the signal will be
able to inspect
where historic
displayed in the chart.
positive
indications and In the left box the signal and action is displayed:
negative > 199.50 ENTRY EASI POSITIVE
indications have • “>” means that the last price needs to go above
occurred or 199.50 to trigger the signal,
which price • “<”means that the last price needs to go below
movements to the trigger price to trigger the signal,
expect in the
future.
• “199.50” is the trigger price,
• “ENTRY” is the action to be taken, if the pattern
trends up one should buy, if the pattern trends down,
one should sell,
• “EXIT” means one should sell if the pattern trends up
and that one should buy if the pattern trends down,
• Lower case signals have never been triggered and no
action has been taken on these signals,
• “CONF” means that penetration of this price level
confirms the trend. These can be used as an alert, for
example when wave 1 gets larger than 100% or larger
then 161.8% of wave 3. This can be used either to
signal possible tops, since resistance often emerges
around Fibonacci price levels or as a confirmation of the
main trend, which is preferable.
• In the signal inspector window you will find a description
of any selected signal below the list boxes.
4. Alert Inspector
The inspection and the interpretation of signals require a
detailed knowledge of the Elliott Wave Principle.
75
Nevertheless studying these signals is very valuable in
learning the Elliott Wave Principle and will assist you in
trading.
If you have The ALERT INSPECTOR will appear as soon as critical price
conducted an levels have been triggered. This can happen when new
entire analysis, End-of-Day or intra day data has been appended to the
the Alert data files or when a real-time feed has been activated.
Inspector will The Alert Inspector also appears when using the powerful
still be empty, simulation feature (Trading signals module required).
since n signals Alternatively the ALERT INSPECTOR can be displayed by
have been selecting View from the main menu and choosing ALERT
triggered yet. Use
INSPECTOR.
the simulation
option (Truncate By default, a summary of the signals will appear at the top
data..)or connect of the window. ELWAVE presents the number of positive
ELWAVE to a indications or negative indications per time frame.
real time feed to If the number of positives significantly outnumbers the
view its contents. negatives on a specific time frame, the picture of course
foretells a rising market, provided the outcome of the
SUMMARY INSPECTOR confirms the same trend. If not the SUMMARY
INSPECTOR still is the most important thing to look at. Clicking
on the DETAILS button will show all relevant signals, which
can give important additional information to take into
account.
Remember that the outcome as presented in the SUMMARY
INSPECTOR is most important. Sometimes at first sight the
(number of) signals can give a conflicting message.
The following should be taken into consideration when

studying the signals:
• determine the time frame you intend to use for your
investment first.
• check the outcome of the summary, if the summary
displays a negative indication for a time frame and
positive signals are presented in the ALERT INSPECTOR, it is
risky to commence buying, however it could be an early
indication of a trend change.
• compare the number of positives versus the number of
negatives for each time frame. The strongest indication
is given when no conflicting signals are shown.
76
• examine the patterns for which signals have been
generated, a trend (especially Extensions) and Zigzag
patterns are the most reliable to trade.
• take a look at the wave of the pattern, wave 3 is the
Although
most interesting and reliable wave.
ELWAVE will • check the description of the signals:
automatically most signals go with the trend and confirm when the
reanalyse any trend is in progress.
scenario, it is There is one exception though, the description “Most
advised to start often the second wave retraces from around 50% to
a new, 62%” refers to a signal that goes against the current
complete trend and therefore is more risky. Signals based on this
analysis from rule have great potential, but needs to be carefully
time to time,
considered. If at the same time however conflicting
especially
when signals arise, its significance is diminished. In addition,
conflicting preferably, the trend of the higher wave degree should
signals have support the direction (up or down) of the lower trend and
been it must be a wave 3 or wave 2.
encountered. • Check the type of signal as for example “Entry buy” or
“Exit buy” as explained below.
Now we will explain the ALERT INSPECTOR in more detail. Below

we will first show an example of the summary in the ALERT
INSPECTOR:
It clearly shows that all time frames have signaled

POSITIVES while no NEGATIVES are detected. Several
CONFIRMS (=HOLDS) have been discovered, confirming
the trend, which is now up. The RECALC indicates that
ELWAVE has detected that the analysis needs to be
updated and it will start to do this automatically in the intra
day version, when you have chosen the Update analysis
menu item yourself in the End of Day version.
77
Pressing the DETAILS button will list the trading indicators that
have been triggered, as demonstrated below:
Notice for example that signals for wave 3 have been found
after updating the analysis.
Whilst the ALERT INSPECTOR can show the following signals, it
should be remembered that the signals in the SUMMARY
INSPECTOR are the dominant ones:
• Entry buy:
this signals that positive alternatives have been
confirmed which is the strongest positive indication.
Normally the SUMMARY INSPECTOR also will show a Positive
for this particular time frame.
• Exit buy:
this signals that at least one negative alternative has
been dismissed. It should be considered as a less
strong positive indication, because other negative
alternatives could still be in existence. Check if the
SUMMARY INSPECTOR shows a Positive too for this particular
time frame. Normally this is an early warning signal for a
trend reversal.
• Entry Sell:
this signals that negative alternatives have been
confirmed which is the strongest negative indication.
Normally the SUMMARY INSPECTOR also will show a Negative
for this particular time frame.
• Exit Sell:
this signals that minimally one positive alternative has
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been dismissed. It should be considered as a less
strong negative indication, because other positive
alternatives could still be in existence. Check if the
SUMMARY INSPECTOR shows a Negative too for this particular
time frame. Normally this is an early warning signal for a
trend reversal.
Next we will show the charts together with the SUMMARY
INSPECTOR that have produced these signals:
As shown, all time frames now show an up trend and 2 time

frames have a Positive EASI reading.
5. Some examples
The examples below show a clear positive or negative
situation, since all time frames forecast the same trend.
79
Reward
(diamond)
Exit
(triangle)
POSITIVE
NEGATIVE
80
MANUAL WAVE COUNT
Using ELWAVE you can label and check your own wave
counts very quickly, although it requires some persistance.
First you have to define the wave count for the chart under
inspection yourself (alternatively you could perform the
same operations through an automatic analysis, which has
been converted to a manual wave count), then choose from
the main menu Analyse and select Check Wave Count.
Immediately Wave counts will get tested on specific Elliott rules
Attention : and guidelines and ELWAVE will show the results in an orderly
Some of the
manner, displaying the WAVE TREE and WAVE INSPECTOR.
ELWAVE tools
will only work
with a manual 1. Make your own wave count
wave count. On top of the screen you will find a window or box called “wave
You have to labels”. This box can be docked on top of the screen or
convert an
automatic
repositioned anywhere by clicking and dragging it to its new
analysis to a position. In the wave label box you will find a combo
wave count first box, which shows the current degree (Supercycle) of
if not using the visible wave labels. This wave label degree can be
your own wave changed by clicking on the down arrow of the combo
count. box and selecting the wave degree.
Looking at the chart you have imported, you see for
example an obvious uptrending “five wave”, which you
would like to label accordingly. Go to the “wave label”
window and grab wave label (IV)
First drop a wave label (IV) or (II) of higher
degree at the low, where the 5-wave
up begins.
This is needed to mark the beginning of the
uptrend of lower degree.
Now grab wave label I by clicking on this wave
label with the left mouse button, keep the mouse
button pressed down, drag the wave label to the
right place and drop it by releasing the mouse
button. This is the top of the first wave or leg, when
the chart rises. Notice that ELWAVE automatically will
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search for a high or low to drop the wave label on, which
speeds up the labeling considerably. Repeat this process
for all wave labels you want to insert into the chart. Note
that you are free to insert these wave labels anywhere in
any order. Of course, it is important to place these wave
labels in an orderly fashion so as to get results that make
sense. As soon as you have placed label (I) to (V), you
should place the labels for the lower degrees. Click on the
combo box in the wave label box and select a lower degree.
Then repeat the drag and drop procedure and so on.
We advise you to label your chart first, before you go to the
next topic, because the objects mentioned hereafter
depend on these labels to function. A complete labeling of
one wave degree will suffice.
Changing the existing wave labeling

If you want to change the wave labeling you can grab an
already positioned wave label and drop it on another bar. In
order to grab the label, first point at the label and click the
left mouse button to select the label. Then click on the wave
label with the left mouse button and while keeping this
mouse button pressed down, you drag the label to another
position in the chart. Release the left mouse button and the
label will be dropped on its new position.
Changing the color of a wave degree

Double click a wave label to change the color of all wave
labels of the same degree. In addition all objects attached
to this wave degree will inherit the same color. This is a
very useful feature to highlight different wave degrees.
Deleting wave labels

If you want to alter wave labeling you can point at a label
and click the left mouse button to select the label. Then
press the DELETE key or choose Edit and Delete from the
menu on top of the screen. To delete all selected wave
labels at once, first select the area, which should be deleted
using the mouse. The area can be selected by pointing the
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mouse at the beginning of the area, pressing the left mouse
button, keeping it pressed, dragging the mouse to the end
and releasing the mouse button. Next select Edit and
Delete from the menu on top. Instead of using the menu
you can also press the DELETE key.
Change wave degree

Select the wave label or select the section in the chart (by
dragging the mouse) in which you want to change the wave
degree. Next choose Edit from the menu on top of the
screen and select the menu option Degree up or Degree
down.
2. Check manual wave count

Basically the pattern engine knows how to recognize the
patterns by checking the rules and guidelines. In addition the
engine knows which patterns are allowed in sub waves of the
parent pattern, since knowing which patterns are within
patterns in patterns… etc. to expect is a very important tenet of
the Elliott Wave Principle. The program refers to this as the
“Internal structure”.
When the program

evaluates rules to verify
wave counts, it does so very
strictly. The outcome is
either true or false, there is
no in between.
Consequently, it will reject
some patterns, even if the
rules have only been
violated by slightest margin
possible.
For example the Zigzag
pattern, which consists of
three waves A B C, does not
allow the B wave to retrace
more than 61.8%. If it
retraces 61.9% the rule engine will reject the Zigzag
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pattern. Of course, it is highly arbitrary to set such rules with
such strict definitions and we recognize the fact that
opinions may differ with regard to pattern definitions. For
this reason we have, for example, defined a ZigzagFlat
pattern in our MODERN RULES engine, which allows for a bigger
retracement than 61.8% for a B Wave.
Nevertheless, ELWAVE does very well what it is supposed
to do. It classifies and recognizes the patterns according to
its rule definitions, which conform to the Elliott Wave
Principle. As a result, normally only one pattern remains if a
pattern has been labeled correctly.
However it is possible to load different rule definition files in
order to suit different preferences.
The CLASSIC RULES and guidelines set (uncheck check box

“indicate reversal >50%” in Analysis options), will analyse
the wave count according to very strict definitions of
patterns as defined by the Elliott Wave Principle and will
signal a false internal structure as well.
Elliotticians who adhere to strict application of the Elliott
Wave Principle will find the CLASSIC RULES most helpful. Wave
counts that fit these rules should have a stronger probability
of proving correct anyway.
The MODERN RULES and guidelines set adopts a more
pragmatic approach, taking into account newly discovered
patterns. Herein, you will find a lot more pattern definitions.
You will find, for example, hybrid patterns like “ZigzagFlat”,
which is a combination of a Zigzag and a Flat. Or falling and
rising wedges, which are more or less similar to ascending
and descending triangles, which are allowed. Another
example is the C wave, which is allowed to be longer than
261.8% of wave A as well as leading Diagonals.
The main purpose of a less strict definition of patterns and
allowing for less common (hybrid) patterns in the MODERN
RULES and guidelines set, is so the program will not reject
wave counts totally, if patterns deviate slightly from the text
book example. As a result of this you will be presented
possibly valid alternatives and you can decide yourself
whether to reject it or not. In addition you can examine the
guidelines to determine the probability of the wave count
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under inspection. The more the guidelines have been
satisfied, the stronger the probability of the count.
How to check hand made Wave Counts

Select Analyse from the main menu and choose Check
Wave Count. This command can be used to check the
Tip: Incomplete wave count of the active chart, to construct the WAVE TREE
or unfinished and to display specific information on patterns, rules and
waves are guidelines.
represented by a This is a useful tool with which to inspect your wave count
WAVE BUTTON in quickly and in an orderly manner. For a description of the
the WAVE TREE use of the WAVE TREE see the section below.
containing a gray ELWAVE will analyse your wave count very quickly. It will
cross, if valid display the patterns found next to the wave label in the
patterns have WAVE TREE.
been found. At Selecting a wave label in the WAVE TREE will display
the right of the information relevant to the pattern found in this wave and
WAVE BUTTON the
display all of the wave degree in the price chart.
first of validated
patterns is In the window named “WAVE INSPECTOR” you will find
displayed. information on the pattern itself as well as the internal
wave structure, and the rules and guidelines which have
been checked.
Options
After selecting from the menu Check Wave count, you can
choose which rules to use for checking a wave count, i.e.
MODERN or CLASSIC.
Additionally you may activate or deactivate (default setting)
the option CHECK WAVE LABELS. This will check wave labels
exactly as they are, so if a wave I and II has been inserted
this no longer can be an A or B of a Zigzag. We advise you
to keep the default setting.
When verifying your own wave counts, ELWAVE will always
check the internal structure of the patterns. If the internal
structure is incorrect, it will return a message “No patterns
match”.
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3. Wave Tree
On the left of the screen you will find the so-called “WAVE
TREE”. You can toggle the display of the WAVE TREE ON/OFF by
selecting WAVE TREE from View in the main menu.
The WAVE TREE displays the wave degrees in a structured
way, recognizing the patterns within patterns. Using the
WAVE TREE you can navigate through the chart and inspect
the wave count.
Clicking the WAVE BUTTONS will zoom in on a specific area in
the price chart, which is connected to the selected wave
degree.
Together with the information in the WAVE TREE, the patterns,
the rules and guidelines as well as major invalidated rules
will be shown in an orderly manner.
It is important to know that the WAVE TREE, the price chart and
the messages are all interconnected.
Expand the wave degrees by clicking with the left mouse
button on the little buttons in the WAVE TREE which show “+”
signs. The sign in the “+” button will change to “-“. Clicking
the same button again will collapse the wave degree.
If you click on a “+” or “-“ button or a button which contains
a wave label, the appropriate section of the chart will be
shown at the same time together with the correct wave
detail level.
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Each large WAVE BUTTON represents a wave and contains the
appropriate wave label of this wave. Next to the WAVE BUTTON
you will find the pattern that ELWAVE has found.
If no valid pattern could be found, the WAVE BUTTON contains
a red cross and the message “No patterns match” will
appear, indicating that the wave has been labeled
incorrectly (apart from the upper wave degree).
Wave Button The message “undefined” will appear if the relating wave
has not been labeled. This is not considered to be an
error.
Double click the WAVE BUTTONs in the WAVE TREE to display
more information about this wave. This will make the WAVE
INSPECTOR appear as described below.
Underneath the WAVE TREE you will find a separate window,
which lists the main errors found in the wave count. These
errors include:
• No patterns match.
Probably the wave labeling is incorrect,
because no matching pattern could be found.
Also a wave label could be missing.
• Missing wave degree.
A wave degree is missing in the order in which
the waves have been labeled. For example the
parent wave is of Primary degree, while its sub wave is
of Minor degree instead of Intermediate degree.
Clicking on these errors will navigate you directly to the right
spot in the chart and in the WAVE TREE, facilitating correction
of mistakes quickly and easily.
Once you have corrected an error, just check the wave
count again to inspect whether violations still exist.
4. Wave Inspector
The WAVE INSPECTOR will show up when you have instructed
the software to check the wave count or as soon as an
automatic count has been completed. You can close it by
clicking on the X button at the right top of the window and
reopen it by double clicking a WAVE BUTTON in the WAVE TREE.
The WAVE INSPECTOR displays information on the wave, which
has been selected in the WAVE TREE. On top in the left list box
87
you will find the matching patterns, at the right you will find
dismissed patterns.
You can select matching or dismissed patterns by clicking
on them with the left mouse button. Immediately the WAVE
INSPECTOR will show information on the selected pattern.
First a brief definition of the selected pattern is given,
followed by an Internal structure, then Rules and
Guidelines.
In front of the rule or guideline you will notice a special
character, a X
if it has been violated and √ if correct.
Rules and Guidelines with a question mark ? have not been
checked by the program and are referred to as
“undetermined”.
A pattern, which has appeared in the left list box, will show
correct rules only. The guidelines could be violated, but
logically these do not reject the pattern, it can only reduce
its probability.
Pattern in chart
Along with the information in the WAVE INSPECTOR, by default
the selected pattern will be displayed in the chart, along
with the SWING FILTER and TARGET BAR. With respect to finished
waves (waves already completed) you can easily project
each pattern in the chart in order to compare which pattern
has the best fit, by selecting the listed pattern in the list
boxes on top of the WAVE INSPECTOR. ELWAVE will intelligently
calculate and draw the associated patterns by using the
origin and end of the wave.
Looking at unfinished or incomplete waves it is even more
interesting to project still possible alternatives, based on the
wave count defined by the user. Validated patterns will use
the already defined waves, to draw the pattern in the chart.
If for example wave 1 and wave 2 have been labeled, these
waves will be used to calculate an Impulse pattern, while
wave 3,4 and 5 will be calculated using the price and time
relationships of wave 1 and 2.
In addition, dismissed patterns can be visualized in the
chart giving important information on all possible
88
alternatives and enabling one to compare the fit of the
pattern with the actual chart.
If for example you have labeled an unfinished wave as
wave 1 and 2, this could still be a wave A, B in a Zigzag as
well as a Double Zigzag, depending on the parent wave.
The pattern shown in the chart will clearly guide you what
alternatives are worth wile investigating.
Note that with regard to unfinished waves, the WAVE TREE will
eliminate those patterns where the rules already have been
violated.
For example as soon as prices exceed the end of wave 3, a
truncated 5th will no longer be possible and thus will be
eliminated.
Options
The user can define several preferences with regard to the
WAVE INSPECTOR and the analysis. You can toggle the display
of the options of the WAVE INSPECTOR on/of by
selecting from the main menu Options and choose the
menu item Wave Inspector, to decide which information is
displayed in the WAVE INSPECTOR. Please note that the display
of TARGET BARS and SWING FILTER is connected to the display of
PATTERN IN CHART. Below we show the dialog box
that will appear.
89
5. Trouble shooting
To correct your wave count, if the software has reported
any errors, use the WAVE INSPECTOR and check the following:
The message “no pattern found” could indicate that:
• The wave has not been labeled completely. A common
error is f.e. that wave 5 is not inserted.
• The wave has not been labeled correctly, or wave
degrees have been mixed or defined twice.
• The pattern is incorrect because the rules have been
violated, which can be checked using the WAVE INSPECTOR.
Some examples: Wave 2 retraces too much, wave 3 is
the shortest wave and so on.
A sub wave of a bigger wave should be of ONE lower
wave degree, if not, this will generate the message
“missing wave degree”.
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TOOLS—EXTRA INFORMATION
In this section you will learn the essentials in more detail in
order to start using the program as a tool right away.
We have assumed that you are familiar with the Windows
environment, the way the menu works and so on. If not, you
will have to study your Windows manuals. You will also
need to know how to drag and drop objects, which we have
explained in the beginning of the manual under the subtitle
Interface.
1. Price targets
Projecting Targets
Using ELWAVE you can project targets yourself once you
have determined the wave count by manually labeling the
chart first. These targets are based on Fibonacci
relationships, which play an important role in Elliott Wave
analysis. So with the help of the Targets tool, you can make
strong probability forecasts provided you have made the
correct wave analysis.
The following method of projecting targets only works on

charts with manual wave counts. Once a chart has been
analysed automatically, choose from the Analysis option
Convert to wave count to generate a manual wave
count quickly.
To project targets, first select a wave label on which the
target should be based. Next press the right mouse
button and choose from the menu Quick targets.
If, for example, wave 1 and 2 are finished, and you
would like to project several targets for wave 3, select
wave label 2, click the right mouse button and choose
Quick targets from the menu. Instantly the targets will
be projected in the chart along with the Fibonacci ratio
on which it has been based.
91
When you project targets based on the waves mentioned
underneath, the following calculations will be made:
• wave 1: retracements of wave 1 of 38.2%, 50%, 61.8%

and 76.4%.
• wave 2 : the price length of wave 1, times a Fibonacci
ratio of 61.8%, 76.5%, 100%, 161.8% and 2.618% will
be added to the end of wave 2, which is the beginning
of wave 3,
• wave 3 : retracements of wave 3 of 23.6%, 382%, 50%
and 61.8% are calculated,
Tip: change the • wave 4 : the price length of wave 3, times a
wave count while Fibonacci ratio of 61.8%, 100%, 161.8% and
your Targets are 2.618% will be added to the end of wave 4,
displayed. Grab
which is the beginning of wave 5,
the wave label to
which targets are • wave 5 : retracements of wave 5 of 38.2%, 50%
attached and and 61.8% are calculated,
drag it to its new • wave A : retracements of wave A of 38.2%,
place. Note that 50%, and 61.8% are calculated,
the targets of this • wave B : the price length of wave A, times a
wave label (and Fibonacci ratio of 61.8%, 100%, 161.8% and
related wave 2.618% will be added to the end of wave B,
labels) will which is the beginning of wave C,
change instantly
when you • wave C : retracements of wave C of 38.2%,
reposition the 50%, 61.8% and 76.4% are calculated,
label. If the new • wave X : the price length of the previous wave
targets fit the C, times a Fibonacci ratio of 61.8%, 100%,
price action 161.8% and 2.618% will be added to the end of
better after wave X, which is the start of the next pattern,
moving the wave • wave D : the price length of the previous wave
label, you could C, times a Fibonacci ratio of 61.8%, 100%,
have found an
interesting wave
161.8% and 2.618% will be added to the end of
label position. wave D, which is the start of wave E,
• wave E : the price length of the previous wave
D, times a Fibonacci ratio of 61.8%, 100%, 161.8% and
2.618% will be added to the end of wave E.
92
Changing Target properties
Position your mouse pointer on the target line and press the
right mouse button. A menu will appear from which you can
choose Properties... and a dialog box will appear. Here you
can change the appearance of the targets.
Alternatively you can double click a target line to change its
properties.
Deleting Targets
To delete targets click on the target line. The selected target
line will be highlighted. To select multiple target lines at the
same time, keep the control key pressed and click on the
next target and so on. Then press the DELETE key or choose
Delete from the View menu.
2. Analyse Fibonacci price relationships

Displaying Fibonacci ratios
Fibonacci relationships play an important role in Elliott
Wave analysis. Fibonacci ratios, price ratios as well as time
ratios can help you to discover the underlying wave count.
The more Fibonacci ratios you find in your wave count the
better your wave count is. With the correct wave count at
hand you can make strong probability forecasts for the
markets. In this version only Fibonacci price relations are
implemented. To display Fibonacci price relations, you have
to label your chart first or convert an automatic labeling to a
manual wave count. Next select one of the wave labels of
the main wave degree you would like to analyse. It doesn’t
matter which wave label of that degree you select. Choose
Insert from the main menu and select Fibonacci Pane.
93
Tip: change the
wave count
while your
Fibonacci pane
is open. Grab
the wave label
you would like
to reposition
and drag it to
its new place.
Notice that the
Fibonacci ratio
of this wave Above your price chart, the Fibonacci Ratio pane will
label (and appear. Use the scroll bar on top at the left if no columns
related wave are visible. Notice that the ratios of the wave degree you
labels) will have selected will appear in the first column at the left.
change The next columns display all underlying waves of one
instantly when lower wave degree of the selected wave, starting with
you reposition wave 1 or A.
the label. Left of the Fibonacci ratio you will find the waves on
which the relationship is based. For example “ 2 : 1” means
the relationship between the price length of wave 2
compared to the length of wave 1.
Underneath each relationship you will find a thermometer.
The more perfect the Fibonacci ratio is, the more expanded
and thus the more red the thermometer will be.
If you spot perfect Fibonacci relationships, you will know
you have made an excellent wave count. If only a few
Fibonacci ratios show up, you could change your wave
count and repeat the Fibonacci analysis until you like the
results. In this way you can see all Fibonacci relationships
of a wave at a glance.
94
Deleting the Fibonacci Pane
To remove the entire Fibonacci pane you can grab the
lower border of the pane and drag it to the top. Release the
mouse button and the pane will disappear.
3. Scenarios
It is now possible to save the automatic analysis that
contains all alternative wave counts that are still validated,
NOTE: In a provided the Automatic analysis module has been
scenario file included with your purchase.
everything you Scenarios are an important feature, because by
have defined will comparing your hand made scenarios you can keep track
be saved. This of the possible alternatives, their likelihood and thus
includes wave obtain a clearer picture in order to forecast future price
labels, trend movements.
lines, channels, To save a scenario is very easy. Each scenario is saved
targets, zooming, in a different file. Once you consider it is worthwhile to
indicator panes,
save the work you have done, or an automatic analysis,
positioning of the
price chart choose Scenario from the main menu, then select the
window and so menu item Save or Save As. Fill in the name of the
on. scenario and click OK. This way you can save as many
scenarios as you like. Suppose you wish to edit your first
scenario now to make an alternative scenario, do so and
then save it under a different name by using the menu
option Save As.
4. DDE link for retrieving data

It is recommended to use eSignal or another fully
integrated, zero maintenance datafeed to retrieve intraday
data in the software. Alternatively, ELWAVE is capable of
adding real-time data to chart data that already has been
loaded or to start an intra day file from scratch. The same
method as in Microsoft Excel has been implemented in
retrieving real-time data, the so-called Dynamic Data
Exchange (DDE) link, a standard way of sharing data under
the Windows environment.
It is possible to either connect ELWAVE directly to the data
vendors’ application or to use Excel to make the link. Using
95
Excel you will be able to connect to all data vendor
applications provided they support a DDE link.
General instructions
Below you see two examples of creating a real-time link
using DDE. First we have specified the string Excel asks for
in order to activate the real-time feed.
If no real time data can be retrieved in ELWAVE, you could
try to make the following changes. Please insert the
following lines in your ELWAVE 7x.ini file (in your Windows
directory) at the top:
[Realtime datafeed]
Use hotlink data=1
Then restart ELWAVE and see if it works. Alternatively you

could change use hotlink data= 1 to use hotlink data= 0 if it
does not run.
You could use an existing data file, or you can start a
file from scratch. Make sure that the format of the file
and retrieved data is the same.
To activate the automatic bad tick correction, make
changes to the ELWAVE 70.ini file as specified in the
separate text box.
In order to append data to an intra day file, it is necessary
that each line of the file has at least the following format:
Date, time, close, volume
ELWAVE can also load compressed intra day files that are
composed of OHLC, in this case every tick will be converted
to Open, High, Close. Volume is optional, while the comma
delimiter could be a tab. The date format in the file MUST
be the same as the data retrieved from the data vendor,
which normally is mm/dd/yy. Below we have listed some
lines of an example file:
<date><time><close><volume>
2-4-1998,9:30,1143.8,0
2-4-1998,9:30,1149.59,0
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2-4-1998,9:30,1150.63,0
2-4-1998,9:31,1150.75,0
Real-time feed with Tradestation / Omega server

In order to establish a real-time feed with Tradestation,
which uses Omega server, you have to run Excel too.
1) Set up an Excel work book with following string in one
cell: =(OMEGA_SERVER|LIVEQUOTE!'AOL,PC').
The ticker symbol is AOL, change the ticker symbol if
you would like to retrieve other data.
2) Save the workbook with file name as desired. In this
case for example set it up as Aoltick.xls
3) While the Excel workbook is open, run ELWAVE , select
Real-time datafeed from the Scenario menu and fill
out the real-time feed dialog box exactly as follows:
DDE Server: EXCEL
Ticker(Topic): Aoltick.xls
Close(item): C
Use the default setting for date and time, leaving it
empty.
Initiating a real-time feed directly

The real-time feed can be activated by choosing Chart from
the main menu and selecting the menu item New Chart.
Next you select from the dialog box DDE SERVER as shown in
the picture below. This dialog box could look like this:
97
or like this:
If you like to change the settings of the real-time feed,

choose the same menu item.
When you start collecting real-time data from scratch (e.g.
you do not have available an existing intra day data file),
98
choose from Chart the New Chart menu item and next
select DDE SERVER. Now ELWAVE automatically presents the
real-time feed dialog box.
On a following page we present a picture of the real-time
feed dialog box and explain how to complete it.
Excel example
Now we will explain how to translate the formula in Excel to
the necessary input for ELWAVE.
If you are not familiar with retrieving real-time data in Excel,
contact your data vendor for the necessary information.
Example
=WBSERVER|NDX!99123/l
server | topic ! item
From the above you can read that the excel string to
activate DDE has been divided into 3 parts, first the server
(up to “| “ character) then the topic (in between “| ” and “!”)
and finally the item (after “!”). Check the manuals of your
data provider for a separate chapter on the format to be
used to activate a real-time data feed in Excel. So when you
just input the real-time Excel string in these 3 parts in
ELWAVE ’s real-time datafeed dialog box, omitting the =, |
and ! characters, it should work. In addition quotes (‘)
surrounding the item should be omitted in the Close (item)
field!
If your data vendors program puts the ticker or item code
after “!” (like the WBSERVER example, you have to repeat
the ticker in the close, date or time field together with the
correct item for close, date or time. It is not necessary to
specify the date, ELWAVE will take the current date. The
same goes for the time item, the system time will be used. If
you do not fill out the time field, make sure the system time
has been set correctly.
The real-time feed dialog box

The dialog box looks as follows:
99
.
multiplier
DDE server:
In this field the program of the data vendor has to be
specified, this is the name up to “| “character as in the Excel
formula.
Ticker:
With some data feeds the ticker needs to be filled out as a
group of items, as in the example above “NDX” represents
“Indexes”, with other data feeds the code of the index, stock
or other ticker itself has to be inserted. See the CQG
example for the latter. This depends on the way your data
vendor has specified the DDE link.
Using the Excel formula, insert the string in between “| ” and
“!”.
Close:
Insert in this field the string after “!”, using the Excel
formula. With some data vendors you need to input the
ticker code together with the close item as in the example
above, using for example CQG you only input the close
item (“last”), because the ticker (f.e. SP500) has already
been inputted in the ticker field.
Multiplier:
100
The multiplier field allows you to correct incoming data i.e.
1.8245 for the dollar / DM could be corrected to 182.45.
Date:
The date item can be inserted in this field, which is a
different code. If this field is left empty, the system date will
be used automatically. Just leave it empty unless a different
date is required. In the event you input the Date item, make
sure to correctly specify the date format, next to the date
item. Press the down arrow to select the correct date
format. Ask your data vendor for the code to use.
Time:
The Time item has to be inserted in this field, which is a
different code. Ask your data vendor for the code to use.
Very important: Auto save:
the software uses In the Auto save field you can define how often ELWAVE will
data files on the save the data automatically, make sure that saving all the
one hand to save intra day files can be done within the time period defined. If
data, and for example 10 large intra day files are active and saved
scenario files on every minute, the system possibly can’t keep up.
the other hand to Save location:
save specific This field will display where the data file will be saved all the
settings or Elliott
time. Press the button Change location or file type to change
analyses of the
chart. The latter the location of the file or to change the file type (ASCII or
settings can be Metastock format). We recommend to save the file as an
settings for real- ASCII file, because it has unlimited size and can be easily
time feed, edited.
activated Trading hours
indicators, and of Define the trading hours of the item you are retrieving in two
course the increments if necessary
analysis, whether Trading days
manual or Define the applicable trading days
automatic. Tick storage
Define how to store your data
Step by step example

Starting the real-time feed for the first time
The following example will show you how to get started
using a real-time feed from scratch. It will be using the CQG
DDE link.
101
1. Start real-time data feed from scratch.
Choose from the main menu Chart, New chart and
finally select DDE SERVER
2. Fill out the real-time feed dialog box.
SPM4 is the ticker for the june S&P future, while “,T”
behind “last” adds 2 decimals to get the correct S&P500
ticks.
3. Press the CHANGE LOCATION OR FILE TYPE button to determine
where the file will be saved. The following dialog box will
appear:
102
4. Press the drop down arrow in the “SAVE AS TYPE:” field
and choose ASCII data format. ASCII will allow you to
edit the data in any text editor, even very large files can
be corrected easily
5. Choose the directory and drive where to save the data
by clicking the “SAVE IN:” field at the top of the dialog box.
6. Insert the file name.
We advise to save as an ASCII file and to use the
extension “txt”. In this example you could save the data
file as “spm8.txt” and press the SAVE button if everything
has been filled out, as it should. You will now be returned
to the real-time feed dialog box.
7. Press the OK button.
If ELWAVE comes up with a message “Could not
connect to the DDE Server”, either the DDE server has
not been started yet (the application of your data vendor)
or one of the codes of the Ticker or items have been
specified incorrectly. ELWAVE will return to the real-time
feed dialog box enabling you to correct the mistake.
8. Wait for the chart to appear.
At first an empty chart will be displayed with the
message: “Waiting for sufficient price data to start
displaying chart…”
9. Wait until data appears before doing anything!
10. As soon as the chart is displayed, save this chart as a
scenario file by choosing Chart from the main menu and
selecting Save as…
103
11. Fill out the Save dialog box.
This works the same way as described earlier where we
have saved the data file. Again, the scenario file will
remember not only the real-time feed settings, but also
where to find the data file! Insert in the “File name:” field
the name of the scenario file, we will use SPM4 in this
case. ELWAVE will save the scenario file as “SPM4.elw”.
12. Press the SAVE button.
13. Once in a while, choose Zoom reset to display all data
that have been collected so far and use the scroll bar to
show empty space at the end of the chart, where future
data can be displayed.
14. After collecting enough data (at least 3 days or more)
you can instruct ELWAVE to make an Elliott Wave
analysis, which, from then on, can be updated
automatically.
Restarting the real-time feed
In the event you have shut down the computer or program,
take the following steps in order to reload the chart
mentioned above and restart its the real-time feed.
1. Start the data vendor application.
2. Start ELWAVE.
3. Load the Scenario(!) file called SPM4.elw as mentioned
above. Choose from the main menu Chart and select
Open… and the Open dialog box will appear.
4. Input in the “File name:” field SPM4 and press the OPEN
button. ELWAVE will now load the data file (SPM4.txt) as
well as the settings for the chart and Elliott analysis
automatically and present the real-time feed dialog box.
5. Press OK in the real-time feed dialog box.
As can been seen, all settings have been retained,
pressing OK will get you started again.
It is advised to reset the computer at least every week or

more often, depending on the number of applications that
are used. Windows 95/98/2000/XP or Windows NT,
ELWAVE or other applications could consume memory,
causing memory problems. In addition, make sure enough
104
hard disk space (100 Mb or more) is available as virtual
memory.
Saving your intra day data

You can make backups of retrieved real-time data regularly
by choosing Export ASCII or Export Metastock from the
Price data menu
105
ELWAVE FOR TRADESTATION
This section covers ELWAVE plug-in and enhanced stand-
alone versions for Omega Research’s TradeStation version
2000i only
TradeStation is a trademark of Omega Research.

Prognosis Software Development is a registered solution
provider for Omega Research’s TradeStation.
Disclaimer, Copyright and Registration

Please re-read this information in carefully as they fully
apply to ELWAVE for TradeStation.
Requirements
Due to the use of TradeStation and ELWAVE in
combination, the hardware requirement is revised to the
following:
Hardware:
- Pentium 200MHz or faster
- 64MB of RAM, however 128MB will allow TradeStation
and ELWAVE to run together easier.
Software:
- Windows 98/NT/2000/XP
- TradeStation (registered trademark of Omega Research)
2000i with EasyLanguage PowerEditor and Omega Global
Server installed.
- End of day Data provider [historybank.com or other] linked
to Omega Global Server.
106
Installation
NB: Before you install ELWAVE, we strongly recommend
you to check that TradeStation is installed and working
properly.
You should first install ELWAVE from the CD ROM. It will

copy to your computer a special version of the program and
a new data provider: Prognosis’ Universal Data Server or
UDS.
Make sure ELWAVE is properly installed before you
continue. You may start the program and check it is O.K.
Once you installed ELWAVE for TradeStation, there is an

extra step to take: install the new TradeStation ShowMe
studies.
- First start the EasyLanguage Power Editor.
You may activate this program from within TradeStation
with the menu "Go \ EasyLanguage Editor".
- Select the menu "File \ Import and Export"
107
- Select Import [the first line] and click on the button "Next".
- Browse and point to the location where you currently have
ELWAVE Setup disk [for instance your CD-ROM].
- Select the plug in and click on Open.
108
- Click the button "Next" accepting every selection
displayed.
- Answer "Yes" to force import to any question during this
process.
You should see this dialog when complete:
You may exit the PowerEditor program. The plug-in is

installed and is available inside TradeStation.
Plug-in versus Stand-Alone

We created the plug-in for TradeStation so you can get a
quick opinion about a stock while you are analyzing inside
TradeStation 2000.
This is called an ELWAVE Summary. It gives you targets for
the selected chart and Elliott Wave labels.
109
Once again, this is a quick opinion and summary of the
Elliott Wave situation for a chart. For in depth analysis it is
always better to use the stand-alone version of ELWAVE.
When using the stand-alone version, you may view target
zones, refine the analysis [with multiple combinations
checking], check Fibonacci levels and many many other
things.
With the plug in you may also have access to the summary
values in TradeStation's Easy language
TradeStation 2000i is a great platform. However it is mostly

a back testing tool. It has several limitations as far as
displaying Elliott data is concerned. This is why we deliver
ELWAVE Stand-Alone version as well where those
limitations do not exist.
Getting Started
In order to add an ELWAVE analysis to a TradeStation
chart, you should first check if there is any ELWAVE study
already selected for the chart. Visually, the chart would be
filled with labels [1-2-3-4-5 and A-B-C] if an ELWAVE study
is already present. To remove the analysis, please refer to
the section "Understanding the ShowMe study".
Wait for the chart to be available [bars are loaded and

displayed], you may select the menu "Insert \ ShowMe".
When ELWAVE for TradeStation is installed properly, you
will see two new ShowMe Studies "_ELWAVE Expert and
_ELWAVE Summary". If you do not see these studies,
please go back and read how to install ELWAVE for
TradeStation’s studies.
110
For now, please select the _ELWAVE Summary. It will start
the plug-in for TradeStation.
After a few seconds, the Elliott engine starts and the

software will automatically analyze the current chart.
Be patient, a real Elliott Wave analysis might take up to

several minutes to complete depending on the complexity of
the data in the chart. This is because the software
compares all the swings and relationships between them.
ELWAVE is the most complete automatic analyst available.

It will check compliance to rules and guidelines, including
proportions between waves, alternation etc..
When the analysis is complete, ELWAVE for TradeStation

displays the summary.
111
This summary is the same than what you get with the
Stand-Alone version of ELWAVE. Please refer to the main
manual for a full explanation.
Understanding the 'ShowMe' study

Labels: The Elliott Wave Count
The chart is now fully labeled and some trendlines might be
present too. This is an example.
112
ELWAVE for TradeStation does also plot targets on the
chart.
For this manual we separated the target plots and the
labels, however, there are actually displayed together.
Price Targets
By default these targets are the "primary" and "Cycle"
targets. They represent the level Elliott Wave analysis
expects in the future. The primary target is represented with
113
a horizontal magenta line. Its exit [or stop] is represented
with cyan line with the same size than the primary target.
The higher time frame [cycle] target is displayed for

reference with a red horizontal line.
Sometimes, the cycle time frame is lower than the primary.
This is because in the shorter time frame, an unexpected
extension [or acceleration] is taking place. This is a good
thing if you followed the signal triggered long ago for the
cycle, since it exceeded your target !
114
The symbol "^^^" shows you the direction of the primary
wave. This symbol is always placed at the level of the EXIT
[or stop]. When the primary wave target is negative the
symbol will turn to "vvv" and the target lines should be
below the EXIT.
Removing an Elliott Wave analysis

When you no longer need the Elliott Wave analysis, it is
easy to remove all the labels, trendlines and targets in one
step. This will also free memory used by ELWAVE engine.
It is also wise to remove ELWAVE ShowMe before saving a
chart. If you save a chart with the ELWAVE Analysis active,
next time you open the chart, the engine will recalculate the
analysis with the new data bars. This takes time and is not
necessarly your intention.
To remove the analysis: Right click on an empty space of

the chat, select the menu 'Format Analysis Techniques' and
delete the extra ShowMe.
Support for multiple charts

ELWAVE for TradeStation does support multiple chart at
once. The summary window will automatically update to
show the data for the selected chart in TradeStation.
115
If no analysis is available, the summary will be simply gray.
Simply add the ELWAVE ShowMe to this chart from
TradeStation's menu.
Updating the analysis

It is possible to get a new summary evaluation of a chart
when you want to.
This might be required when new data is added to the chart.

Simply click on the "Update" button in ELWAVE Summary
window.
NB: this will not remove the labels from the previous
analysis on the TradeStation's chart. Only the summary is
updated.
When you want a complete update, simply remove the

ELWAVE ShowMe [see the previous section] and insert it
again with the TradeStation's Menu "Insert \ ShowMe".
116
Elliott Wave Oscillator in TradeStation
We also included the Elliott Wave Oscillator (Tom Joseph
1987) as an indicator study for TradeStation. ELWAVE 's
manual contains a complete explanation regarding this
indicator and how to use it.
It is now possible to apply it to any chart. Select the menu

"Insert \ Indicator" in TradeStation
This indicator will not start the Elliott Wave engine and it is
also very fast to compute.
Example: NASDAQ’s recovery
The main power of this indicator is in detecting divergence.
117
The NASDAQ crash of spring 2000 does show a strong
bullish divergence during the last leg down. This happens
right before a Bull Run from 3000 to 4000.
Accessing ELWAVE data in Easy Language

In TradeStation, it is possible to access the summary
inspector variables from ELWAVE. This is the same
summary displayed floating on top of the chart.
118
NB: By its very nature, ELWAVE data is produced only for
the last active bar. Back testing is not practical. This seems
incompatible with the use within TradeStation. However we
think otherwise. The best use of the summary inside Easy
Language is to confirm alerts and order decisions. You get
it all, stops that make sense, risk/reward study based on the
proven Elliott Wave principle.
_ELWAVE Activate and _ELWAVE Variable

Basically, you need to call two functions: _ELWAVE
Activate and _ELWAVE Variable to get the results. It is
hardly simpler.
_ELWAVE Activate will start the Elliott Engine and run an

analysis of the current chart.
_ELWAVE Variable allows you to query any of the resulting
values.
The query is a string you pass to the function _ELWAVE

Variable. For example to get the target price of the primary
wave up you type:
_ELWAVE Variable( ElDocID, "primary,up,target" );
NB: do not let any space in this string!
Possible values for the waves: cycle, primary, intermediate,

minor, minuette
Possible values for the direction: up, down
Possible values for the variable: target, exit, reward, risk
We provide a ShowMe template so you can use it to

understand and use the technique in your own studies.
Annotated source code
-----------------------------------------------------------------------------------------
-
vars: ElDocID(0),ElVariable(0), D1(0),TLine(0);
119
{
There is at least one call to the Elliott Wave engine
It is executed only within the first few bars refresh of the chat.
It does analyze the entire chart of course.
}
ElDocID = _ELWAVE Activate(1);
IF ElDocID >0 Then Begin
ElVariable = _ELWAVE Variable( ElDocID, "primary,up,target"

);
{
the variable return is either a price or a value like
a risk/reward ratio.
you may use it for plotting etc..
NB : the value is known at the very beginning of the chart.

any plot would be done there.
A nice way to overcome this limitation is to use trendlines
to show the data at the end of the chart
}
{calculate a few days before the end}

D1 = DateTojulian(lastcalcdate);
D1 = D1 -50;
{create the trendline with the returned variable value}

TLine = TL_New ( JulianToDate(D1), time, ElVariable,
lastcalcdate, time, ElVariable) ;
TL_SetColor( TLine, yellow );
TL_SetSize( TLine, 2);
TL_SetStyle( TLine, 2);
End
else Noplot(2);
{
Since this is a show me study
you must plot something... otherwise no trendline will be visible
}
if date = lastcalcdate then begin
plot1( close * 1.5, "dir" );
end;
-----------------------------------------------------------------------------------------
-
Stand-Alone version from TradeStation

We have included a way to start in depth analysis.
120
In TradeStation, when a chart is active, simply select the
menu "Insert \ ShowMe". Then select the expert ELWAVE
analysis.
A new Stand-Alone ELWAVE starts and automatically

creates a new scenario. The chart in ELWAVE window
displays the same symbol and the same date range you
selected in TradeStation. Now you can use the full power of
ELWAVE to analyze the data.
In this ELWAVE window, feel free to open other scenarios

or create new chart. The data is a copy of the chart in
TradeStation, not the same database.
Tips: Do's and Don't
- Do use more than 1-year data for a daily chart analysis.
121
With less data, the analysis is hardly reliable. Depending on
the market, 2 years or more is good.
- Do not save an ELWAVE ShowMe as part of a

TradeStation Template.
Elliott Wave analysis takes time. It can take up to 5 minutes
on a slow computer and as little as 20 seconds. Therefore,
you do not want to add the study to all your charts by
default since you will not be able to access the chart until
the ELWAVE analysis is complete.
- Do not add several ELWAVE ShowMe for the same chart.

If you did so, please consider removing the analysis. Right
click on an empty space of the chat, select the menu
'Format Analysis Techniques' and delete the extra ShowMe.
- Do not attempt analysis of intraday data with ELWAVE for

TradeStation plug-in.
The current version of ELWAVE supports only end-of-day
data. We are already working on intraday and realtime data
which will be available in a future upgrade.
122
Accessing Omega Data outside TradeStation
When you are using ELWAVE for TradeStation in Stand-
Alone mode [thus outside TradeStation] it is still possible to
access all the symbols and data from Omega Global
Server, the data engine for TradeStation.
NB: This version of ELWAVE for TradeStation supports

only end-of-day data.
Select the menu "Scenario \ New \ From Omega Global

Server" and this dialog should appear soon after.
In this screen, you must select one symbol in the list. The
tickers, exchanges and descriptions of symbols installed in
the global server are visible.
The date range is automatically set to two years ago. You

may free select any starting or ending date when you follow
the format visible on the screen.
123
NB: the range is a request only. ELWAVE will use only
data ALREADY downloaded in the global server.
By default, the select "Auto refresh end date" is active. This
feature makes sure that each time you reopen a saved
scenario, it uses the latest data available.
To "freeze" a scenario in a specific range of dates, simply

unselect the checkbox. The starting date is not affected with
the auto refresh feature.
You may need to update the analysis when you reopen a

scenario is "auto refresh end date" active. To do so, select
the menu "Analyse \ Update Analysis".
NB: bars are not saved in the scenario as such. They

remain in the Omega Global Server. If you delete or strip
data from the server, every ELWAVE chart will be affected.
Likewise, when you add data to the server, charts will be
enhanced with more quotes.
Setting Omega Data to work well in ELWAVE

Usually, you do not have to do anything to access data from
Omega Global Server in ELWAVE for TradeStation.
However, some symbols are displayed with the wrong unit

in ELWAVE. This is due to Omega Global Server's way to
describe quotes.
This is the case, for instance, with the $NDX [nasdaq-100

index symbol]. It is very easy to fix.
In Omega Global Server, select the symbol in the portfolio,

then select the menu "Edit \ Edit Symbol", you should see
this screen when you click the tab "Settings".
124
Change the "Price Scale" field to 1/1000 instead of 1/100 if
the quotes were divided by 10 in ELWAVE for TradeStation.
This change does not affect TradeStation charts.
125
INDEX
+ button ............................... 47 channels .............................. 62
Abs. % (min)........................ 39 Chart objects........................ 45
Accepted ............................. 32 Check manual wave count... 92
Actions to perform ............... 31 Check Wave count............... 80
Alert Inspector ......... 84, 85, 86 Check Wave Count.............. 95
All negative.......................... 36 Classic ........................... 81, 93
All positive ........................... 36 Close.................................. 112
alternatives ........................ 61 collapse the wave degree .... 96
Analyse in scanning ............ 30 color of a wave degree ........ 92
analyse it more detailed ...... 78 compressed intraday files .. 107
Analyse selected wave........ 78 Conditions matrix intraday ... 39
Analyse Selected Wave ...... 60 CONF................................... 83
Analysis Examples .............. 77 Confirm ................................ 49
Analysis options .................. 73 CONFIRM ............................ 86
Analysis Type .................... 74 Converting wave counts to
AND conditions.................... 41 scenarios.......................... 73
append data to an intraday file correct your wave count..... 100
....................................... 107 critical price level ................. 48
ASCII intraday file.............. 115 critical price levels................ 54
Auto refresh end date........ 139 Date ................................... 112
Auto save .......................... 113 date format ....................... 108
Automatic analysis .............. 59 DDE ................................... 107
Automatic analysis update76 DDE server ........................ 111
Automatic compression ....... 72 Degree down ....................... 92
Batchprocessor (Scanning Degree up ............................ 92
version) ............................ 30 Deleting or removing indicators
batchprocessor options ....... 31 ......................................... 10
Calibration ........................... 66 Deleting Targets ................ 104
Change location or file type Deleting the Fibonacci Pane
....................................... 114 ....................................... 106
Change wave degree .......... 92 Deleting wave labels............ 92
Changing indicator properties description of the selected
......................................... 11 signal................................ 83
Changing Target properties103 description of the signals ..... 85
Changing the existing wave Detailed................................ 75
labeling ............................ 91 Details button................. 84, 86
126
diamonds............................. 44 exponential moving average
dismissed patterns .............. 51 ......................................... 13
display Alert Inspector...... 84 Export ASCII ...................... 117
display of Target bars and Export Metastock ............... 117
Swing filter ....................... 99 extra time frames ................. 81
display Signal Inspector Extra wave degrees ........... 76
window............................. 81 Extra Wave degrees........... 81
Down ................................... 38 Fibonacci ........................... 102
Down only............................ 38 Fibonacci Price ratios ....... 68
drop wave............................ 80 Fibonacci price relationships
Dynamic Data Exchange... 107 ....................................... 104
EASI .................................... 55 Fibonacci Proportions....... 68
Easy Language ................. 132 Fibonacci time clusters ........ 21
Edit button conditions .......... 27 Fibonacci Time ratios........ 68
Edit button scanning............ 25 Filter based .......................... 24
Edit Scan conditions............ 27 finished waves ..................... 60
Elliott moving average line .. 21 Finished waves .................... 77
Elliott Oscillator.................... 18 First steps using Scanning... 25
Elliott Wave model............... 63 Fractals ................................ 63
Elliott Wave Oscillator ....... 130 gray cross........................... 47
ELWaveActivate ........ 133, 134 grey cross ............................ 61
ELWaveVariable........ 133, 134 guidelines ........................... 68
Entry .................................... 49 indicator in a separate pane 10
ENTRY ................................ 83 indicator in the price chart...... 9
Entry buy ............................. 86 Indicators ............................... 7
ENTRY EASI POSITIVE ..... 83 inspect alternatives .............. 59
Entry Sell ............................. 87 Inspecting alternative wave
errors ................................... 97 counts............................... 69
examples ............................. 88 Internal structure............ 64, 92
Excel.................................. 107 Interpretation........................ 59
Excel DDE ......................... 108 intra day charts .................... 73
Excel example ................... 110 Long..................................... 38
Exit ................................ 49, 56 MACD .................................. 14
EXIT .................................... 83 manual Wave count ............. 90
Exit buy................................ 86 min% Wave column ............. 40
Exit Sell ............................... 87 Minimum Bars .................... 76
Expand the wave degrees... 96 Missing wave degree ........... 97
Experts information ............. 63 Modern..................... 81, 93, 94
Explain................................. 34 Modifying indicators ............. 10
Explanation of indicators ..... 11 Momentum........................... 15
127
Most often the second wave Price Chart window.............. 44
retraces from around 50% to Price targets....................... 101
62%.................................. 85 probable targets................... 62
Moving Average Convergence Projecting Targets.............. 101
Divergence....................... 14 Proportions .......................... 65
Moving Averages................. 13 Quick targets................ 62, 101
Multiple sessions ................. 72 R/R (min/max)...................... 39
Multiple time frames ............ 70 R/R (risk-reward) ................. 55
Multiplier ............................ 112 rank the alternatives ............ 52
NEGATIVE .......................... 86 Ranking alternative wave
New button scanning........... 26 counts............................... 67
next...................................... 46 Rate of Change.................... 16
no pattern found ................ 100 Real-time Data feed........... 106
No patterns match ............... 97 real-time feed..................... 108
NOT conditions.................... 42 Real-time feed ................... 107
number of buys or sells per real-time feed dialog box ... 111
time frame........................ 84 Real-time feed with
OASE ................................ 110 Tradestation / Omega server
Object toolbar ...................... 45 ....................................... 108
Omega Global Server........ 138 Recalc.................................. 49
Omega server.................... 108 RECALC .............................. 86
Open chart........................... 33 red cross....................... 48, 51
OR conditions...................... 42 Rejected............................... 33
path of expected price action Relative Strength index........ 11
......................................... 61 Restarting the real-time feed
Pattern definitions............. 74 ....................................... 116
pattern engine ..................... 92 Reward (min) ....................... 39
pattern in the chart .............. 98 Risk ............................... 55, 57
patterns ......................... 64, 68 ROC..................................... 17
Patterns based .................... 23 RSI levels............................ 13
patterns in a particular wave Rules and Guidelines ........ 98
......................................... 68 rules and guidelines in the
patterns in patterns.............. 71 Wave Inspector............... 54
plug-in................................ 123 save a scenario.................. 106
Plug-in ............................... 122 Save as type ...................... 115
POSITIVE............................ 86 Save location ..................... 113
Precise................................ 75 Saving your intra day data . 117
Predefined scanning conditions Scan Inspector............... 25, 28
sets .................................. 36 scan intraday files............... 39
previous............................... 46 scan list................................ 26
128
Scan list............................... 29 Swing filter 50, 65, 72, 74, 75,
SCAN NOW!........................ 32 98
Scanned-accepted-rejected Target .................................. 55
progress indicator ............ 32 Target bar ............................ 61
Scanning Conditions ........... 29 Target Bar............................ 98
scanning EASI..................... 37 Target bars ......................... 44
scanning selection criteria ... 37 Target Bars .......................... 50
Scanning Trend ................... 37 targets................................ 126
Scenarios .......................... 106 Targets................................. 61
score.................................... 52 technical Tools................... 101
scores of sub waves and sub thermometer ...................... 105
patterns........................... 68 tick correction..................... 107
scroll bar.............................. 51 Ticker ................................. 111
scroll bar Fibonacci pane .. 105 Time................................... 112
scroll bars ............................ 49 Time Clusters....................... 21
search for wave 3................ 36 Time Clusters properties...... 24
Searching for a Wave.......... 36 Time Fibonacci pane ........... 21
select matching or dismissed Time frames (or wave degrees)
patterns............................ 98 ......................................... 57
Selecting one of these Tradestation....................... 108
alternatives ...................... 69 Trading Momentum.............. 15
selection criteria .................. 66 Trading RSI.......................... 11
Short.................................... 39 Trading signals in ALL CAPS
Show details ........................ 33 ......................................... 49
ShowMe ............ 119, 123, 136 Trading the Elliott Oscillator. 19
signal in Signal Inspector .... 83 Trading the MACD ............... 14
Signal Inspector .......... 48, 81 Trend ................................... 56
signals ................................. 81 trend change........................ 85
simple moving average..... 13 triangle ................................. 44
Sort function ........................ 43 Trouble shooting ................ 100
Sort in scanning................... 35 UDS ................................... 119
sort on wave information ..... 43 undetermined....................... 98
Stand-Alone............... 122, 135 unfinished ...................... 60, 61
Starting the real-time feed for unfinished waves ......... 47, 60
the first time ................... 113 Unfinished waves................. 79
studying the signals............. 84 Universal Data Server........ 119
summary............................ 124 Up ........................................ 38
Summary Inspector..... 44, 54 Up only................................. 38
summary of results............. 61 Update ............................... 129
summary of the signals ....... 84 Using your own wave count. 79
129
validated patterns ................ 51 Wave information in the
View..................................... 96 Summary Inspector .......... 34
Waiting for sufficient price data Wave Inspector.............. 50, 61
to start displaying chart.. 115 Wave label toolbar ............... 45
Wave Button46, 59, 69, 72, 81, wave labels .......................... 90
96 wave of the pattern .............. 85
Wave column....................... 34 wave structure ..................... 60
wave count .......................... 90 Wave Tree ..................... 72, 96
wave degrees..................... 72 Windows SHIFT and CTRL key
......................................... 27
130
131

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Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558,

This manual is copyrighted. No part of this manual may be

In the Advanced section of the manual we will give a more

This section is valuable and written for Elliott Wave experts

Indicators always have the same compression as the price

2. Creating an indicator in the price chart

5. Deleting or removing indicators

Trading Moving Averages

Moving Average Convergence Divergence (MACD)

Trading the MACD

Again a divergence is one of the most powerful signals,

Trading Rate of Change (ROC)

Trading the Elliott Oscillator

As long as the oscillator does not retrace more than 138.2%

Time Fibonacci pane

It is advised to use the settings as displayed, which works

The scanning module now has combined the previous

1. First steps using Scanning

Choose View from the main menu and select Scan

Analyse in scanning (Batchprocessor)

Scanned-accepted-rejected progress indicator

Wave( information in the Summary Inspector)

By default the software will present the results sorted on

Easy to use Predefined scanning conditions sets

Searching for a Wave

• Additionally you can make more complicate

The Price Chart window

The WAVE LABEL toolbar, which by default, lists the

The SYMBOL toolbar is used for retrieving a chart immediately

The Wave Tree

Before you use

Clicking a WAVE BUTTON, that displays a wave label, will show

The most interesting Waves are the unfinished waves,

If the Trading signals module is included, double clicking a

Clicking on the pattern will

As shown in the picture below, clicking on the WAVE BUTTON

Here you will find how high

The internal structure of the pattern.

Green checkmarks if it has been

The score, on top in bold, in the WAVE INSPECTOR is the total

Here you can find all Fibonacci,

A green checkmark if validated,

Clicking on the rules and guidelines in the WAVE INSPECTOR will

The same as with rukes, but

The Summary Inspector

The SUMMARY INSPECTOR probably provides the most important

Apart from the SUMMARY INSPECTOR it is recommended that you

These time frames, as highlighted in the picture, show the

The average reward of all underlying,

Still you might want to inspect thoroughly the different

the previous and next alternatives. The alternative that has

Additionally, you could try the different Analysis options to

Additional information on the Elliott Wave engine can be

On these vertical lines you will notice small horizontal lines,

Elliott Wave model

Clearly, wave 2 is far too small to be of the same degree as

Other selection criteria

Ranking alternative wave counts

All these requirements have been incorporated in the

Now selecting wave (III) with the right mouse button as

Multiple time frames

Multiple sessions (not recommended to TRIAL users)