Elliott Wave and TD Sequential Trend Signals with Fibonacci Levels

Summary

This strategy combines a 21-period exponential moving average to mark changes in wave direction, Fibonacci retracement levels, and a TD Sequential-style count. The description defines buy and sell setups after nine consecutive closes respectively below or above the close four bars earlier, then calls for three consecutive signals alongside a formed fifth wave. It places long stops and targets at the first and third wave levels, and short stops and targets at the fourth and second wave levels.

The document outlines potential weaknesses, including lag, false signals in sideways markets, parameter sensitivity, and overfitting. It provides one-minute BTC/USDT futures backtest settings for a month, but no performance results. The supplied code's entry conditions count to three times the setup length, rather than checking for three separate setups, and its wave variables repeat the latest EMA-cross prices instead of defining a conventional five-wave sequence. The Fibonacci levels are plotted but do not gate entries. These differences mean the implementation does not clearly match the described strategy and needs validation before its results can be interpreted.

Key ideas

• EMA crossovers define the described wave direction, with Fibonacci retracements used as potential support or resistance.
• The TD-style setup counts consecutive closes relative to the close four bars earlier.
• The overview calls for three consecutive buy or sell signals after a fifth wave forms.
• Wave levels are proposed as stop and target references for long and short trades.
• The source's wave construction and entry conditions differ from the overview, and no backtest performance is reported.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.