How to interpret an Elliott Map

[Stephanos]

How to interpret an Elliott Map

A Elliott Map is created by taking an incomplete Elliott pattern, and plotting many likely paths to its completion. More probable paths are plotted more often than less likely paths. By plotting hundreds or even thousands of probable paths in this way, a picture of the future is formed. Colors represent how often the plotted paths cross a given price/time coordinate. The more times the plotted path crossed a particular position on the Elliott Map, the lighter the color. Therefore, the lighter the color, the more probable the market will be at that price at that time.

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[Stephanos]

A Elliott Map is the result of overlaying multiple Elliott Maps, each according to its individual rating value. Elliott Maps resulting from counts with high ratings will have a greater effect on the final combination Elliott Map than Elliott Maps from counts with low ratings.
Often the result of an analysis is a number of counts, each different, but each having a similar shaped Elliott Map. Normally an analyst may ponder at great length to decide which count is the best. However, a Combination Elliott Map can quickly show that at times it doesn't matter exactly which count is the best as most of the high rating counts are showing a similar picture of the future.

At other times there may be two major alternative pictures of the future. A Elliott Map will be able to show the complete picture in a glance. For example, the following Elliott Map shows that a summary of all legitimate counts results in two major possibilities, one being a strong move up, and the other, a strong move down. The probability of the move up is higher than a move down. It is unlikely that the market will move sideways. This would be a good time to buy options, but not a good time to write options!

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[Stephanos]

Όταν εμφανίζεται στο διάγραμμα μία λεπτή κάθετη φωτεινή γραμμή τότε υπάρχει η πιθανότητα για μία απότομη αντίδραση κατά τις επόμενες συνεδριάσεις.