• November 18th, 2018

Important Update: Counting Elliott Waves just got better and easier…again – Part 2

This is the second part of a two-part update, so you might want to first check out Part 1.

In addition to the core automatic wave count engine improvements and performance optimizations that I discussed in Part 1, this past week’s major release also included a number of stability and performance enhancements for the WaveBasis application itself. This means it’s better, stronger, and most of all, faster.

The speed gains in the application are quite significant, so the app feels much more snappy overall. This is especially true if you open many tabs or track multiple active wave counts simultaneously. WaveBasis users have been pushing the envelope with their charting workspaces, so we went to work to meet the demand.

Also, as I’ve mentioned previously, we introduced a number of great new features with the latest major release. Here’s a quick summary:


Automatic Pivot Detection
Automatically determines where to start a wave count, including the “Blue Dot” starting point indicator for constant clarity
Wave Count Context (Bias) Selector
Take control and refine automatic wave counts based on your definition of the market’s context
Count Subwaves
Assess subwave structure between existing waves to help with count interpretation and comparing wave counts
Drilldown Wave Counts
Easily zoom-in to calculate wave counts at lower time scales to help pinpoint precise trade entry/exit setups
Click-to-select Date Range Tool
Quickly run wave counts on any area of a chart without ever leaving the chart
Up-to-the-present Date Range Option
Compute automatic wave counts on the most current price action, even if it’s not visible on the chart


This latest round of enhancements takes us a few more steps forward in our continuing mission to provide the most comprehensive and intuitive Elliott Wave analysis platform ever made available. Continue reading to learn more about these new features…


Automatic Pivot Detection

WaveBasis will now automatically identify key turning points on your charts, and start automatic wave counts from the most important pivot point within your selected date range.

This helps address one of the most common struggles that folks tend to have with applying Elliott Wave Theory: where to start a wave count. This can be especially challenging for those who are just beginning to learn how to count Elliott Waves.

Now you don’t have to worry about where to start your wave counts, because WaveBasis takes care of it for you, effectively removing the guesswork from the process.

Additionally, we’ve included an automatic wave count starting point indicator – the “Blue Dot” – which shows where an automatic wave count will begin. So you can always see where a wave count will start before you run it.


Wave Count Context (Bias) Selector

You can now impart a corrective or impulsive bias on automatic wave count calculations. This is useful for times when you’re already clear about the direction of the trend in a given market or at a particular time frame. This will tell WaveBasis to only search for wave patterns that are valid within the market context (Impulsive or Corrective) that you select.

In most cases, the default setting of Neutral is the best place to start, however, more advanced users will find the Bias Selector particularly helpful in refining their analyses. If you’ve been tracking a chart for some time, or your Elliott Wave expertise has already given you a sense of a market’s context, there’s no faster or easier  way to get a precise, valid wave count to confirm your trade thesis. Additionally, choosing a bias can be especially powerful when combined with the Alternate Wave Counts gadget.


Count Subwaves

Now you can quickly and easily use the automatic wave count feature of WaveBasis to compute the wave structure of unlabeled areas between existing waves on a chart. This lets you instantly see lower degree Elliott Wave pattern structure.

Sometimes the difference between a valid wave count and a winning wave count is the structure of the lower degree price action between the waves of a given pattern. This is sometimes referred to as “internal structure”.  So, counting subwaves can help you draw clear distinctions when you are assessing or tracking one or more wave counts. If the internal structure of a pattern better conforms to standard Elliott Wave guidelines, then it’s generally considered to be a higher probability pattern.

If you find an area of interest in an existing wave count or a particular pattern that doesn’t have subwaves, you can autocount the area at the same timeframe as the chart. Any subwaves that are detected will be added to the current wave count or pattern. This can be particularly useful for filling in additional detail on longer term wave counts.

You can use the subwave counting feature with automatic wave counts, as well as counting between waves that you’ve drawn manually. When used with manually drawn waves, counting subwaves can help you determine the validity of your work.

Subwaves  can be counted forward or backward in time from any existing wave by simply right-clicking on the wave label and choosing Count Subwaves from the popup menu.


Drilldown Wave Counts

The new Drilldown feature makes it easier than ever before to pinpoint potential trading opportunities, by greatly streamlining the process of analyzing a market at multiple timeframes.

Multi-timeframe analysis is an essential, although often overlooked, part of successful application of the Elliott Wave Principle. And, experts know that multi-timeframe analysis is best practiced by starting at higher timeframes and drilling down to lower timeframes. This is true whether you are a long term investor or a day trader.

For example, you might wish to drill down from a weekly chart to a daily one, or further from a daily chart to a 60 minute chart.

While larger timeframes are critical for establishing a market’s overall (higher-degree) context, inspecting wave counts on smaller timeframes is crucial for timing and precise risk management. And, when you drill down from a particular wave, WaveBasis will only search for wave patterns that are valid in the context of the wave you have selected.

Additionally, the Drilldown feature is integrated with the Alternate Wave Counts gadget. So, when you do a drilldown, the highest probability wave counts will be listed in the gadget in the same way as with a standard automatic wave count.

Drilldown wave counts can be performed forward or backward in time, on both automatic wave counts or manually drawn waves, by simply right-clicking on the wave label and choosing Drilldown from the popup menu.


Click-to-select Date Range Tool

Labeling a chart with an automatic wave count in WaveBasis was already extremely easy, but we’ve added a new way to accomplish this task that’s even easier and more flexible. Now you can calculate an automatic wave count using the Click-to-select Date Range tool in the top toolbar.

Once you’ve enabled the tool, simply click once anywhere on the chart to choose the beginning of the range, then click again to indicate the end of the range. The wave count will then be calculated automatically.

This makes it easier than ever before to label specific areas of a chart with valid wave patterns. An indispensable tool for spot-checking as you build your case for a trade thesis.

TIP: If you enable the “Keep Drawing” setting, you can repeatedly count various sections of a chart without having to re-enable the Click-to-select tool after each wave count.


Up-to-the-present Date Range Option

If you want to include the most current price action in an automatic wave count, even when it’s not visible on your chart, now you can enable “Up to the present” in the Date Range Selector.

When enabled, clicking the main automatic wave count button (the blue WaveBasis logo in the top toolbar) will compute a wave count from the starting point on the current chart (defined by your selected Date Range), even if the most recent price action is not visible in the chart window. This is useful for times when you might have to scroll back in time to find a significant market turning point.

Note: If you find yourself scrolling far back in time to find a market turning point, it’s usually a sign that you should increase the time scale of your chart. This is especially true if you are looking at an intraday chart. Additionally, automatic wave counts that contain a large number of bars generally take longer to calculate. For example, if you’re interested in more than one year of price history, you’ll have better results with a daily chart rather than a 60 minute chart. Once you’ve established a market context with a daily wave count, you can then use the available tools to “zoom-in” on more recent price history, depending on your trading style and horizon.


Well…that was quite a mouthful, and I hope you enjoyed hearing about the latest updates. Even more importantly, I hope these powerful new features will help you get the most from your Elliott Wave learning and analysis…and most importantly, improve your bottom line trading profits!

Happy trading, and always feel free to reach out to us at support@wavebasis.com if you have any questions at all. We’re here to help.