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The Elliott Wave Prophet indicator is considered among traders to be one of the most profitable algorithms created for use in MT4 for performing wave analysis. This algorithm is remarkable in that it makes it possible not only to analyze the movements that have already taken place but also to predict the market direction using the method proposed by Elliott.
Elliott's theory has been indirectly confirmed in our time, when specialists tried to impose wave structures on historical processes, in particular, studies explaining the trends towards globalization/isolationism are of the greatest interest.
In other words, this pattern works wherever certain forces (cultural characteristics, media, politics, etc.) influence people's consciousness, and the market, as we all know, is a downright reference example of an environment where such manipulations are considered the norm.
This algorithm plots already formed waves on the price chart, the number of which is set by the trader in the settings (3 by default), and also indicates the landmarks of potential movement. All information about this is duplicated in text format in the upper corner of the platform used.
To make it convenient for a trader to use the Elliott Wave Prophet indicator, it implements the ability to sequentially drag waves in manual mode if the construction in automatic mode does not suit him for some reason. In such cases, the algorithm will independently generate potential waves based on the newly set values.
The chart above shows the Elliott Wave Prophet markup generated by the algorithm, i.e., the indicator has studied the market zigzags and built approximate wave structures.
Indicator settings
The Elliott Wave Prophet settings are pretty simple and have the following parameters:
DrawFirstLines - the number of actual (already formed) waves that the Elliott Wave Prophet will mark on the chart (it will build all other formations by the calculation method using Fibonacci numbers);
PaintedColor - the color of the fixed waves;
ProphetColor - forecast color.
Indicator signals
In addition to following forecast lines, working with this indicator and detecting its signals implies knowledge of the Elliott Wave Theory.
In particular, the signals of this indicator are the correct proportions of waves. Regular structures have the following features:
The second wave should be 0.382 - 0.618 of wave 1;
The third wave is always the strongest and longest - it is the basis of the model;
It is desirable that point 4 is above/below point 1 (depending on the upward or downward trend).
Conclusion
In general, the Elliott Wave Prophet indicator is a fairly effective tool, as it is able to work flawlessly and perform all the tasks assigned to it. But before starting real trading with this tool, we strongly advise you to study the Elliott theory itself, its principles, and the patterns considered in it.
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Try WinRAR for Windows or The Unarchiver for Mac .
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
