Discover the Two Core Components of TradeSets
The 1st Component: Trend Lines & Expansion Lines
To interpret the first component of TradeSets, you'll want to pay attention to the color of the Trend Lines. Magenta indicates a downward trend, while green indicates an upward trend. The arrow indicates the time origin of the Trend Line, and the dot indicates when the Trend Line first became visible. Each end of the Trend Line should connect to the end of the corresponding Expansion Line. When the colors of the Trend Lines mix, this suggests a temporary correction within the main trend. The more Trend Lines that are connected to a Horizontal Expansion Line, the more confident you can be in the short-term continuation of the market direction.
Summary:
- Down trends are indicated by a Magenta color, while up trends are indicated by a Green color.
- The time origin of the Trend Line is indicated by an arrow.
- The time when the Trend Line first became visible is indicated by a dot.
- Each end of the Trend Line connects to the end of the corresponding Expansion Line.
The 2nd Component: 4th Wave Expansion Boxes
The second component of TradeSets highlights the expected structure of the 4th wave (in an Elliott Wave count) and provides two price levels that will be reached through the use of corresponding expansion lines. The significance of the 4th wave is indicated by the color of the box surrounding it, with orange or light blue indicating a normal 4th wave and red or blue indicating a significant one. This component helps traders understand the expected development of the 4th wave in a given market and time frame.
These sets can be used to trade full wave cycles, or only within the box structures.
After ordering you get a document with a deeper understanding of the Trade Sets.