14.4 Trading Elliott Wave with Fibonacci Part 1 – QUIZ

1. Why can wave 1 be difficult to trade? *

You are trying to pin the start of a new trend which is the hardest to catch

Most Elliott Wave software providers don’t account for Wave 1

Wave 1 is the longest wave and therefore takes the most amount of time to reach its target

Wave 1 is always the short estmotivewaveandhasthe small esttarget

2. Why is wave 3 the most popular to trade? *

Wave 3 has a popular community of traders trading it

Wave 3 can never be the shortest motive wave and is often the largest ,and therefore can have favorablereward/riskratios

Wave 3 is easier for trading software programs to find

3 is alucky number amongst many cultures

3. What are possible retracement percentages when trading wave 3? *

50%

61.8%

78.6%

All the above

4. When you enter wave 3 using a larger retracement percentage, what can this mean? *

You have apotentially reduced reward/risk ratio

You have a potentially increased reward /risk ratio

You get in the trade quicker

It takes longer to reach your target

5. If you have entered a trade at the 61.8% retracement level hoping to catch the start of wave 3, where is a good place for your stop loss? *

50%

A stop loss isn’t required for Wave 3

The 100% level which should be the start of Wave 1

200%

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