Elliott Wave and Divergence available?
Author: tradercn
Creation Date: 8/6/2011 2:44 PM
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Is there any extension regarding pattern recognition? I am thinking an idea regarding elliott wave and MACD. Later I want to test if ross hook works.
In a book I just read, it says in the wave e of the elliott wave, the divergence of MACD creates a very accurate trading signal. How can I backtest it? Do you have any idea?
I remember there is a software which name is Advanced Get. It analyzes elliott wave automatically. Does WL have such extension to help us? Thank you.
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Seek and ye shall find:

1. There was an Elliot Wave Trading System ChartScript which you can translate using WSTL or manually.
2. Divergence Between Two DataSeries (Detect, Plot)
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Advanced Get is an eSignal subscription service, so as soon as we can get an eSignal adapter out there (it's in beta testing now), you can just subscribe if you think it's worth it. But there really aren't any good Elliott Wave scripts that are available, let alone accurate. EW counts are subject to revision based on future price action, so that makes backtesting Elliott Wave practically impossible.

Imho, for your particular "wave e" signal, you'd do better simply by detecting the first 4 waves of the triangle. That would be all you really need. Triangles are frequently-observed patterns, and accordingly to Elliott Wave theory, triangles are always the penultimate wave in the count.
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Also, triangles might very well be the topic of an upcoming Trading System Lab in ActiveTrader Magazine.
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Thanks for your quick response all the time even in weekend.

Here is the picture I downloaded from a website in Chinese, forgot which site. But it shows my idea. It was generated by Advanced Get. (I don't know why the picture can not be showed, could you please fix it for me?)

Cone, I fully understand EW is subjective, but this picture shows the idea what I am thinking. :)

I wish to see a new indicator or a pattern recognition extension as what this picture shows for EW. I will try the script Eugene provided.

Thanks for both of you. Have a great weekend.
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One more question regarding the WealthScriptTranslator, It exit abnormally. A dialogue was pop up. I clicked Detailed Information, it shows a message as below. Since my operating system is Chinese, it showed improperly here. Could you please help? Thanks again.


************** ???? **************
System.ArgumentException: ?????????
? System.IO.Path.NormalizePathFast(String path, Boolean fullCheck)
? System.IO.Path.GetDirectoryName(String path)
? WSTL.WSTL.Translate()
? WSTL.WSTL.Translate1()
? WSTL.WSTL.toolStripButtonTL1_Click(Object sender, EventArgs e)
? System.Windows.Forms.ToolStripItem.RaiseEvent(Object key, EventArgs e)
? System.Windows.Forms.ToolStripItem.HandleClick(EventArgs e)
? System.Windows.Forms.ToolStripItem.HandleMouseUp(MouseEventArgs e)
? System.Windows.Forms.ToolStrip.OnMouseUp(MouseEventArgs mea)
? System.Windows.Forms.Control.WmMouseUp(Message& m, MouseButtons button, Int32 clicks)
? System.Windows.Forms.Control.WndProc(Message& m)
? System.Windows.Forms.ToolStrip.WndProc(Message& m)
? System.Windows.Forms.Control.ControlNativeWindow.WndProc(Message& m)
? System.Windows.Forms.NativeWindow.Callback(IntPtr hWnd, Int32 msg, IntPtr wparam, IntPtr lparam)

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Educated guess: you haven't configured the $Includes folder in WSTL. See the User Guide of this unsupported utility on how to specify a folder for Include files. The ElliotWave script referenced by the EW chartscript you're trying to translate is available in the Code Library section on wl4.wealth-lab.com. The code has to be manually saved and placed in that folder as a text file with .WS extension, if my memory serves me. Not sure if WSTL would have trouble with folder names in Chinese but to be on the safe side, ensure that the complete path to the Includes folder contains only English symbols.

All further WSTL queries please address to the WealthScript Translator forum.
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Would it be possible to republish this script (Elliot Wave). I'm getting a 404 error page not found. Many thanks.
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Sorry, the legacy (wl4) website that had hosted it has been decommissioned.
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do we have a code to draw elliott wave
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No we don't. If you're not faint of heart, you can modify a framework like this to adjust it for EW's rules:

TASC 2013-06 | The 1-2-3 Wave Count (Vervoort)
TASC 2013-07 | The Step Candle Pattern (Vervoort)

Make sure you've read Cone's post #3 above, though.