Elliott Wave Auto + Fib Targets + Scalper Strategy

The Elliott Wave Auto + Fib Targets + Scalper Strategy indicator provides an automated framework for identifying Elliott Wave patterns, Fibonacci targets, and scalping opportunities within a single interface. It aims to simplify complex wave analysis by automatically labeling impulse (1-2-3-4-5) and corrective (A-B-C) sequences while projecting potential price targets based on Fibonacci ratios.

Usage

The tool is designed for both trend following and reversal trading. The Elliott Wave component identifies structural market phases, while the scalper component provides execution signals based on EMA crossovers and RSI filters.

• Wave Analysis: The indicator automatically plots pivot-based wave counts. Impulse waves are labeled 1-5, and corrective phases are labeled A-C.
• Fibonacci Targets: When a pattern is identified, the script projects Fibonacci extension levels (e.g., Wave 5 or Wave C targets) to help determine potential exit points.
• Scalping Signals: If enabled, the script generates "Buy" and "Sell" markers based on the interaction between short-term EMAs, RSI thresholds, and volume confirmation.
• Risk Management: The strategy component includes logic for Two-stage Take Profits (TP1 at 1.5 R:R and TP2 at 3.0 R:R) and an ATR-based trailing stop for winning positions.

Details

The script utilizes a pivot-based detection system to identify local highs and lows, which are then analyzed against Elliott Wave rules (e.g., Wave 3 must be larger than Wave 1 and Wave 5).

Key technical implementations include:

• Dynamic Labeling: Replaces standard tables with label-based visualization to ensure stability across different chart layouts.
• Volume Filter: Optional volume confirmation requires price moves to be backed by relative volume (1.5x the 20-period SMA) before validating signals.
• Trend Filter: A 200-period EMA is used to identify the macro trend, ensuring scalping signals align with the broader market direction.

Settings

• Pivot Left/Right Bars: Determines the sensitivity of the pivot detection for wave counting.
• Max Stored Pivots: Limits the number of historical pivots stored in memory for performance.
• EMA Short/Long: Sets the periods for the fast and slow moving averages used in the scalping logic.
• RSI Length/Max/Min: Configures the RSI filters to avoid buying into overbought conditions or selling into oversold conditions.
• ATR SL Multiplier: Defines the distance of the initial Stop Loss based on market volatility.
• TP1/TP2 R:R: Sets the target reward-to-risk ratios for the two exit stages.
• Trailing ATR Multiplier: Adjusts the sensitivity of the trailing stop once TP1 is hit.

FAQ

• How do I interpret the wave labels? Impulse waves (1, 3, 5) are typically colored to match bullish sentiment, while corrective waves (2, 4, A, B, C) represent pullbacks or trend changes.
• What triggers a scalping signal? A signal is generated when the short EMA crosses the long EMA, provided the RSI is within the specified bounds and volume confirmation (if enabled) is met.
• How can I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.