ELWAVE for MetaStock - Manual
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1 Prognosis Software Development, phone: +31 (15) ,
2 DISCLAIMER The Customer acknowledges and agrees that neither Prognosis Software Development (Owner), nor its employees, make any representation or guarantee regarding how this product may perform now or in the future, nor will this product guarantee profits for the Customer. The Customer is advised to test the software thoroughly before relying upon it. The user accepts to assume the entire risk of using the software. In no event shall Owner be responsible for any special, consequential, actual or other damages, regardless of type, and any loss or lost profit resulting from the use of this software or printed material. Customer acknowledges that success depends upon Customer s ability to utilize the information, software and techniques described in this product. Customer s payment, returning of the registration card or signature shall be evidence of Customer's acceptance of all of the License agreement. The software is for personal use only, therefore Customer is prohibited to distribute analysis results of ELWAVE in any way without prior consent of Owner of the software REGISTRATION Please register online within 1 month. Upon registration you will be entitled to updates and upgrades at an attractive discount. If you do not register, you are not entitled to support. COPYRIGHT Copyright Prognosis Software Development. Jesseplaats GZ 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 Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 2-
3 CONTENT Disclaimer...2 Registration...2 Copyright...2 CONTENT...3 Introduction General Installation Hardware requirements...10 ELWAVE for MetaStock...11 Attaching an ELWAVE wave count to a MetaStock chart...11 Adding an ELWAVE Expert Advice to a MetaStock chart...14 Explanation of ELWAVE for MetaStock Expert Commentary...16 Explanation of ELWAVE for MetaStock Summary...16 Removing an ELWAVE wave count from a MetaStock Chart...17 ELWAVE for MetaStock Tradingexample...18 INTRODUCTION 1. General ELWAVE for MetaStock, a Windows based software program from Prognosis Software Development, has been specially designed for users of MetaStock in order to apply the "Elliott Wave Principle" profitably in MetaStock. The Elliott Wave Principle generally is regarded as the most successful forecasting method ever discovered, but difficult to apply because of its complexity. In addition to its uncanny ability to forecast future events, the Elliott Wave Principle is known for its complexity. There are numerous rules and guidelines, which have to be applied objectively and consistently. This requires a considerable amount of experience, time and emotional control in order to make a high quality analysis of the markets and to make objective and consistent analyses, which is extremely difficult for humans to accomplish. Not so for a computer. Once the rules have been programmed, the computer can perform the analysis quickly, in an objective and consistent way. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 3-
4 Of course, programming the experts knowledge is a very complex task to accomplish. It has taken many years of research, designing and programming the rules to achieve the results ELWAVE generates today. Particularly since a true Elliott wave model has been programmed, which is capable of analyzing the fractal nature of the markets by searching and approving patterns in patterns, in patterns and so on. ELWAVE for MetaStock uses the same highly acclaimed Elliott Wave Engine as the ELWAVE Retail Version and with ELWAVE for MetaStock every MetaStock user now easily can benefit from these highly profitable trading advices. ELWAVE for MetaStock automatically detects Elliott Wave patterns in price information, thereby eliminating the need of many hours of tedious work, as well as to provide trading information. ELWAVE for MetaStock searches for the best alternative and will show a clear outlook, presenting the most preferred wave count in the chart. Even more important, it will summarize results, presenting the user a clear outlook as well as the probabilities as derived from the Elliott Wave Principle. Not only will ELWAVE help you to unravel the Elliott Wave, it is also fun to use! Operating system: ELWAVE for MetaStock is available for Windows 95/98/2000/XP and Windows NT 3.51 (or higher). The Windows 95/98/2000/XP and NT version is truly object oriented with a 32-bit design for fast and more stable performance. It is highly recommended to use ELWAVE together with Windows XP Compatible MetaStock versions: The ELWAVE for MetaStock Plugin is full compatible with MetaStock Version 7.2 (or higher). 2. Installation Installation of ELWAVE for MetaStock requires some simple steps and will install itself on the fly: The software is advised to run with Windows XP, but it is compatible with all Windows versions, up from Windows 98. Run Microsoft Windows and make sure to have administrator access in order to install all files needed. Register and Download the ELWAVE for MetaStock installation file from our website and save it on your hard disk (e.g. in the directory C:\Download). Please check to use a valid address on which we can send your serial number. Start the Windows Explorer (or any other file manager) and browse to the folder where you ve saved the installation file (e.g. C:\Download) Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 4-
5 Double-click to the installation file to start the installation. If your Windows presents you a security alert, please confirm to run the installation file. Installation will start and guide you through automatic installation. Also the ELWAVE for MetaStock Plugin will be installed automatically. (See following Screenshots) Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 5-
6 Prognosis Software Development, phone: +31 (15) ,
7 After installation your copy of ELWAVE for MetaStock needs to be activated. To do so please enter the serial number which you ve received by after the download process and click on Next and then on Finish to end the activation process. Prognosis Software Development, phone: +31 (15) ,
8 Prognosis Software Development, phone: +31 (15) ,
9 Prognosis Software Development, phone: +31 (15) ,
10 Now ELWAVE for MetaStock is ready for first use and you have full access to the ELWAVE Expert Advise and the ELWAVE Expert Commentary. 3. Hardware requirements Minimum requirements Windows 98/2000/XP or Windows NT 3.51 or higher. IBM compatible Pentium 1 GHz. 128 megabytes of RAM. 100 megabytes of hard disk space. Mouse. Color monitor. 800 x 600 but screen resolution of 1024 x 768 or higher screen resolution. MetaStock 7 or higher Recommended Pentium 1,8 GHz or faster. 256 megabytes of RAM, 32mb or more for intra day analysis x 768 screen resolution. 500 MB of hard disk space to be used as virtual memory. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 10-
11 ELWAVE FOR METASTOCK Attaching an ELWAVE wave count to a MetaStock chart Attaching an ELWAVE wave count to a MetaStock chart could not be simpler. Just select Tools / Expert Advisors from the MetaStock menu (or press CTRL+R),... Highlight ELWAVE Expert Advise and click Attach. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 11-
12 Now close the MetaStock dialog box and ELWAVE automatically will start calculating the preferred Elliott Wave count in the background. Please be patient, don t click on the screen or reset the computer if the software seems to be busy. ELWAVE is calculating thousands possible combinations, taking into account every Elliott Wave rule, every Fibonacci ratio and the fractal nature of the chart, which takes a little bit of time. As soon as ELWAVE has finished the calculations, the preferred Elliott Wave count automatically is displayed in your chart. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 12-
13 Example: NASDAQ-Chart, analyzed on October 27th 2004 (Close 1.480) Prognosis Software Development, phone: +31 (15) ,
14 Adding an ELWAVE Expert Advice to a MetaStock chart Now your chart contains the Elliott Wave labels and it is time to ask the ELWAVE Advisor how to interpret the results and if trading opportunities exists. To add the ELWAVE Expert Advise to your chart simply select View / Expert Commentary and a new window with all the valuable information will appear. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 14-
15 Example: NASDAQ-Chart with Expert Commentary, analyzed on October 27th 2004 (Close 1.480), showing 3 consecutive uptrends, which gives a clear BUY advice with price-targets of 1522 (shortterm) to 1538 (medium term). Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 15-
16 Explanation of ELWAVE for MetaStock Expert Commentary The new ELWAVE for MetaStock Expert Commentary window is the ultimate trading advice you ve been waiting for. Here all the important expert advise is displayed, reporting a clear outcome and explanation of the analysis results in plain English. This greatly simplifies trading using our software. If a trading advice is available for that chart, it will be displayed in the top of the window. Additional information is displayed in the Summary at the bottom of the Expert Commentary window. Explanation of ELWAVE for MetaStock Summary The SUMMARY probably provides the most important and concise information, eliminating the need to be an expert Elliott analyst. Using this information, you will have clear indications on how to trade and when to enter or exit positions. Apart from the SUMMARY 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. The SUMMARY is displayed at the bottom of the Expert Commentary window. The column headed EASI is the main indicator to watch. As long as the TARGET is above the current price (in a down trend below the current price), the EASI column will give a positive (or negative) indication, depending on the trend. If the markets overstep the TARGET, the EASI will become a neutral. If all time frames display the same signal, either a positive or negative, then expect an acceleration in the direction of the trend, provided a large price movement has not yet taken place. Should ELWAVE, for example show 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. Normally a neutral signal means you can still hold on to your positions. Should the smallest time frame change to a negative, you have an aggressive signal to exit your positions, depending on your trading strategy. Time frames 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. The lower listed TIME FRAMES (or wave degrees) in the SUMMARY 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. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 16-
17 Note: Please note, that the calculated time frames depend on the amount of loaded price data. To get short term signals (for the next weeks) we recommend to use a short term history of about bars (1min-hourly). To get medium term signals (for the next months) we recommend to use a medium term history of about bars (daily). For longer term signals (for the next years) daily bars is the recommended amount of data, but please notice that a long term signal probably will not include information about the expected short term movements. Please use the Load Options from the MetaStock Chart / New menu to adjust the amount of loaded price data. Removing an ELWAVE wave count from a MetaStock Chart To remove the ELWAVE wave count from your chart, simply select Tools / Expert Advisors from the MetaStock Menu (or press CTRL+R), Highlight ELWAVE Expert Advise and click Detach. After closing the MetaStock dialog box the wave count is removed. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 17-
18 ELWAVE for MetaStock Tradingexample With the following example we would like to show you how easy it is to make profit with ELWAVE for MetaStock. 1.) Position entry Tradingexample Position entry : NASDAQ-Chart with Expert Commentary, analyzed on May 21st 2003 (Close 1.113), showing 3 consecutive uptrends, which gives a clear BUY advice with pricetargets of 1188 (short-term) to 1294 (medium term). Since all timeframes signal a positive EASI you can expect an acceleration in the direction of the trend. Also the Expert Commentary gives a clear BUY advice for at least 10% or more. So this is the right time to open a position and to stay in the market Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 18-
19 until the first timeframe changes to negative (or neutral, depending on your strategy), which is shown in the next Screenshot Position exit Prognosis Software Development, phone: +31 (15) ,
20 2.) Position exit Tradingexample Position exit : NASDAQ-Chart with Expert Commentary, analyzed on March 2nd 2004 (Close 1.473), showing a mixed outcome (2 consecutive uptrends and 2 consecutive downtrends), which gives a signal to close the Long position you opened at and to take the profit. Now, about 10 month after the Trading-Entry, the 2 longer term time frames still signal an uptrend with a positive EASI, but the 2 shorter term time frames have turned to negative, signaling a correction before the price can rise again. As we already have a profit of 360 points (+24%), this is now the right time to take the profit and to close the position. Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 20-
21 Note: The longer term trends are still up with a target of , so as soon as the correction is over, the shorter time frames will turn to positive again and you ll get a new BUY advice to open a new long position. If the down move would become more dominant, the longer term time frames would turn to negative and you would get your SELL advice to open a short position. So just take the profit and wait for a new signal Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 21-
22 INDEX Adding an ELWAVE Expert Advice to a MetaStock chart...14 Attaching an ELWAVE wave count to a MetaStock chart...11 Content...3 Copyright...2 Disclaimer...2 EASI...16 ELWAVE for MetaStock...11 Entry of a position...18 Exit of a position...20 Explanation of ELWAVE for MetaStock Expert Commentary...16 Explanation of ELWAVE for MetaStock Summary...16 General...3 Hardware requirements...10 History...17 INDEX...22 Installation...4 Introduction...3 NEGATIVE...16 NEUTRAL...16 Note...17 Position entry...18 Position exit...20 POSITIVE...16 Registration...2 Removing an ELWAVE wave count from a MetaStock Chart...17 TARGET...16 TIME FRAMES (or wave degrees)...16 Tradingexample...18, 20 Prognosis Software Development, phone: +31 (15) , info@prognosis.nl - 22-
23 Prognosis Software Development, phone: +31 (15) ,
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