Elliott Wave Settings

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Elliott Wave Alerts Criteria Settings

The parameter settings for the Elliott Wave scan criteria are divided into two areas: Basic and Advanced settings.

By default the Advanced Settings are all turned off.

Elliott Wave Basic Settings

The basic settings for the Elliott Wave scan criteria are divided into four sections:

These settings are made in the top part of the Elliott Wave Scan Properties dialog box:


Wave Criteria Settings

The Wave Criteria settings are similar to the variables applicable to the Elliott Wave chart Hi-Lite, except that scans only apply to one wave, and the additional search parameter specifying wave formation direction.


Trend Direction Selector

Select Up or Down to restrict the scan to identifying only trades in those directions.

Select Either to disregard this restriction and identify trading opportunities in either direction..

Data Points

Type in the number of trading days over which the wave will be calculated.

Its default is 300 trading intervals. This has been determined to be a setting which will return optimal results for daily markets in most securities.

Select the Wave to be Scanned

As previously mentioned, Elliott Wave scans only apply to one wave.

Select the wave on which the scan will operate. Waves numbers 1, 2, 3, 4 or 5 can be selected, but normally the wave formations are insufficiently formed in the early stages and only Waves 3, 4 or 5 will provide enough meaningful data to be useful.

For each scan, more than one wave can be scanned: create a separate scan criteria and select a different Wave.

Restrict Age of Current Wave

Users can restrict the timeframe of waves that will be scanned.

Setting a time limit in which the current wave must commence will eliminate from consideration waves that are too late in the Elliott Wave cycle to provide trading opportunities.

Type in the maximum number of bars (intervals) in which the current wave has formed.

Require Complex Waves only

Users can restrict the scan result to only complex waves, i.e. only those that contain an ABC.

Select the minimum number (1, 2, 3 or 4) of turning points that the current wave must have.

Oscillator Criteria Settings

Part of the mathematical calculation of Elliott wave formations includes an oscillation analysis of the price data.

Users can restrict the scan results based on oscillation ranges.


Wave 4 Oscillator Retracement Range

Type in the exact percentage amount. Fractional percentages can be specified up to two decimal places.

Range between Divergence Wave 3 and Wave 5 Oscillator

Type in the exact percentage amount. Fractional percentages can be specified up to two decimal places.

Elliott Wave Break Out Trigger (EBOT) Settings

The Elliott Wave Break Out Trigger (EBOT) is composed of a standard deviation value that interacts with the price data.

When the EBOT value "crosses" the price data, the trigger is activated. This can be displayed graphically on a price chart using the Elliott Wave Hi-Lite.

Select this function to restrict the scan results to those waves which also satisfy the EBOT criteria.

The trigger is set to analyze a particular data type, and to a particular level.


Select Data Type

The EBOT can be set to refer to either the Close price data or the High/Low prices for each interval.

Select EBOT Level

Type in the EBOT Level that the trigger will analyze. This setting affects the EBOT's standard deviation calculation.

Enter a whole number, the default is 2.

Retracement / Extension Criteria Settings

Retracement means that a wave is moving in the opposite direction to a previous wave. An extension occurs when a wave moves in the same direction as a previous wave.


The scan criteria can be set to detect a particular wave's retracements or extensions within a set percentage of a previous wave in the Elliott Wave formation.

The wave selected for comparison does not have to be the Current Wave selected in the Wave Criteria section, above.

First select the wave to be compared

Use the drop down menu to select a wave to be compared with a previous wave.

Waves 1, 2, 3, 4 or 5 can be selected.

Select Direction of the Comparison

Select Retracement to compare two waves moving in the opposite directions, alternatively select Extension to compare waves moving in the same direction.

Specify the Range of Difference

The range of difference, whether retracement or extension, is expressed as between two percentages of the previous wave.

Type in the exact percentage amounts for the beginning and end of the range. Fractional percentages can be specified up to two decimal places.

Select the Previous Wave on which the Comparison is based

Finally the wave on which the comparison is based is selected.

Select the wave from the drop-down menu.

Note that if Wave 1 is selected as the wave to be compared, the previous wave on which the comparison is based will be the last choice in the drop-down menu - Wave 0-3.

Elliott Wave Advanced Settings

Check the Show Advanced Settings check-box to enable the settings in this group.


The advanced settings appear as an extension to the bottom of the Settings tabbed page. A scroll bar will appear on the right margin to navigate between the normal settings at the top of the page and the advanced settings at the bottom of the page.

The following Advanced Settings are available:


Price Retracement

The three settings allow retracements or extensions of close price or various Wave levels to be compared with others.

Time Retracement

Two time retracement levels can be set.

Wave 3 EBOT Channel

The EBOT Channel can be used to trigger an Elliott Wave alert.


Oscillator readings can be set to augment the Elliott Wave settings.

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