MARKET SENTIMENT
ENIGMERA like no other indicator and system excells with inteligence . It is possible in a bullish trend to determine bearish sentiment and vice versa in a bearish trend to find bullish sentiment. If we are in a bearish trend and no bearish target line is visible this is the reason. Then you can include a bullish target line and everything will fall into place.
These are periods of uncertainty.
ENIGMERA warns you about that as well.
COMMON INTEREST ZONE
When we place the indicator on the chart we see what is the target of the
movement. Every movement has a target.
What we figured out is the following:
The movement has many participants all with different goals, but there are one very delicate point.
No matter how different their goals are they have at least one common goal (price, level) to be reached (desired by all) because they are still a group.
This is the most acceptable price for all.
Is the price determined by one big trader and a few small or by a multitude of different traders does not matter.
But the market leaves a trail and Enigmera measures that. The target line always appears. That’s the common interest. There’s initial force, there is a target. The target can be reached, but it may not be, but the minimum common interest is at the level where the market reaches the line and especially to the most its closest break.
Why?
Reaching the line we reach the common interest, but it does not enough in most cases because the refraction that would that follows represents the test at that level i.e. what do they think market participants think about the place they have reached.
At this level we can safely harvest what we have earned.
Whether there will then be unanimity about the direction is not our concern.
As a matter of fact when the target line is reached the Enigmera it should be seen as a very strong consensus of the market to reach a fairly extreme level. It’s sort of squeezing the maximum out of the market. Everybody is thinking alike and acting the same way, and when we go beyond that it’s a third wave of
some scale.
The market will sooner or later correct to the Enigmera line where we can open a position again.
If the target is not reached it may follow. Another variation is from
the line to put a new Enigmera, which will again show us what is the total new target.
Positions should only be opened on the Enigmera line or at a reversal signal after reaching the target line.
If we have opened a position and the market breaks the Enigmera line and is
reverses we are waiting for the total interest to be reached, which the Enigmera will show and take a reverse position because the market will correct
to the level that was broken. There is no case that this has not happened.
By opening a reverse position we are protected because we open it on the
level where the general interest of the reverse trend is. Knowing that
the market has to correct to the broken level we are protected more
the best way.
Profit can be made from our reverse
position and close our losing position at 0 or minimal loss.
The right estimation common interest zones is the most important.
Trading with and within interests is the grail.
No need of any other indicators.
ELLIOTT WAVES COUNTING
Have questions? Contact us!
Example 2:
In this example, we imported 3 Enigmera indicators, one for each trend, to illustrate the wave impulse counting. When counting this way, you can use just one indicator and move it as needed.
Elliott Wave Counting with Enigmera is easy and logical. By following these rules, we achieve excellent results:
- Every trend is a wave.
- A trend break defines a new wave.
- Reaching the target line is the wave’s top.
Enigmera also takes into account the alternation rule in wave counting.
Notice how each wave differs from the others:
- Wave [1] moves between the support line and the 45-degree line, indicating a weak trend, typical at the beginning of any trend.
- Wave [2] is a break below the trend of Wave [1].
- Wave [3] ends when the target line is reached, where the trend also ends.
- Wave [4] always starts from the top of Wave [3].
- Wave [5] reaches up to 50% of the estimated trend’s target.
You will notice that the alternations can be:
- A wave that ended below the target line.
- A wave that reached the target line.
- A wave that reaches 50% of the target line.
Example 3
Leading diagonal
