The parameter settings for the Elliott Wave scan criteria are divided into four sections:
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.
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..
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.
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.
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.
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.
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.
Type in the exact percentage amount. Fractional percentages can be specified up to two decimal places.
Type in the exact percentage amount. Fractional percentages can be specified up to two decimal places.
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.
The EBOT can be set to refer to either the Close price data or the High/Low prices for each interval.
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 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.
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 Retracement to compare two waves moving in the opposite directions, alternatively select Extension to compare waves moving in the same direction.
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.
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.