Elwave Manual

DISCLAIMER The Customer acknowledges and agrees that neither Prognosis Software Development (Owner), nor its employees, make any representation or guarantee regarding how this product may perform now or in the future, nor will this product guarantee profits for the Customer. The Customer is advised to test the software thoroughly before relying upon it. The user accepts to assume the entire risk of using the software. In no event shall Owner be responsible for any special, consequential, actual or other damages, regardless of type, and any loss or lost profit resulting from the use of this software or printed material. Customer acknowledges that success depends upon Customer’s ability to utilize the information, software and techniques described in this product. Customer’s payment, returning of the registration card or signature shall be evidence of Customer's acceptance of all of the License agreement. The software is for personal use only, therefore Customer is prohibited to distribute analysis results of ELWAVE in any way without prior consent of Owner of the software

REGISTRATION Please sign and return the registration within 1 month. Upon registration you will be entitled to updates and upgrades at an attractive discount. If you do not register, you are not entitled to support.

COPYRIGHT Copyright © 1996-2004 Prognosis Software Development. Jesseplaats 14 2611 GZ Delft, Netherlands This manual is copyrighted. No part of this manual may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Prognosis Software Development.

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Every effort has been made to ensure complete and accurate information concerning the material presented in this manual. However, Prognosis Software Development can neither guarantee nor be held legally responsible for any mistakes in printing or faulty instructions contained in this book. Version 7.1-1 11082004

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CONTENTS Disclaimer _________________________________________ 2 Registration ________________________________________ 2 Copyright __________________________________________ 2 Contents ___________________________________________ 4 Introduction ________________________________________ 9 1. General ____________________________________________ 9 2. Installation ________________________________________ 10 3. Describing the modules in ELWAVE ___________________ 11 4. Interface __________________________________________ 12 5. Hardware requirements _____________________________ 13 Minimum requirements____________________________________ 13 Recommended___________________________________________ 14

New in version 7 and higher . _________________________ 15 Calibration______________________________________________ 15 Full support for eSignal datafeed ____________________________ 15 Expert Advisor __________________________________________ 15 Quote Monitor___________________________________________ 16 Scanning Standard and Professional __________________________ 16 MetaStock 8.0 ___________________________________________ 16 Full support for Quote.com_________________________________ 16 Templates ______________________________________________ 16 Screens ________________________________________________ 16 Wave Tree, Wave Inspector and Summary Inspector_____________ 17 Quick Symbol ___________________________________________ 17 Automatic Scenario management ____________________________ 18 Automatic Analysis on open chart ___________________________ 18 Batch Processor preserves existing Scenario settings_____________ 18 Toolbar with various buttons _______________________________ 18 Full support for TenforeQuoteSpeed realtime datafeed (optional) ___ 18 Full support for KeyWord Wall$treet (Dutch/Belgian customers only, optional) _______________________________________________ 20 Expert Advisor __________________________________________ 20

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Scanning Professional_____________________________________ 20

Getting Started_____________________________________ 21 1. Quick start ELWAVE _______________________________ 22 2. Additional topics ___________________________________ 33 The chart window ________________________________________ Scrolling _____________________________________________ Charting styles ________________________________________ Zooming _____________________________________________ Scaling ______________________________________________ Compression __________________________________________ Detail level ___________________________________________ Rescaling of panes added to the price chart __________________ Trend lines _____________________________________________ Special feature ________________________________________ Channels _______________________________________________ Speedlines ______________________________________________ Gann Fann______________________________________________ Spirals _________________________________________________ Trigger lines ____________________________________________ Golden ratio Time Ruler ___________________________________ Simulation ______________________________________________

33 33 33 35 35 36 37 37 37 38 38 39 40 40 41 42 43

3. SCANNINGeasy and simple… ________________________ 45 Scan Inspector___________________________________________ 45 Analysis Batch processor __________________________________ 47 Scanning for trading setups_________________________________ 48

Using the Menu ____________________________________ 50 1. Chart_____________________________________________ 50 New Chart ______________________________________________ New Quote window ______________________________________ Open __________________________________________________ Close __________________________________________________ Save___________________________________________________ Save as ________________________________________________ Save as template _________________________________________ Save all ________________________________________________ Export Metastock ________________________________________ Export ASCII ___________________________________________ Print___________________________________________________

51 60 61 62 63 63 64 64 64 65 65

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Print All________________________________________________ 65 Exit ___________________________________________________ 65 Recent Scenarios_________________________________________ 65

2. Edit ______________________________________________ 66 Degree Up ______________________________________________ Degree Down ___________________________________________ Copy Chart _____________________________________________ Delete _________________________________________________ Properties ______________________________________________

66 67 67 67 68

3. View _____________________________________________ 68 Zoom In________________________________________________ Zoom Out ______________________________________________ Zoom Reset _____________________________________________ Hairline ________________________________________________ Semi-log (linear) _________________________________________ Targets ________________________________________________ Charting style ___________________________________________ Wave Tree______________________________________________ Wave Inspector __________________________________________ Summary Inspector _______________________________________ Alert Inspector __________________________________________ Scan Inspector___________________________________________ Simulation Inspector ______________________________________ Panes __________________________________________________

69 69 69 69 69 70 70 71 71 71 71 71 72 73

4. Insert_____________________________________________ 74 New Indicator Pane_______________________________________ New Indicator in Price Chart _______________________________ Managing Indicator panes _______________________________ Fibonacci Pane __________________________________________ Volume Pane____________________________________________

74 78 79 79 80

5. Analyse ___________________________________________ 80 Analyse entire chart ______________________________________ Analyse selected wave (1 level) _____________________________ Analyse selected wave (2 levels) ____________________________ Update analysis __________________________________________ Check Wave Count _______________________________________ Convert to Wave count ____________________________________ Clear Analysis___________________________________________ Start batch processor ______________________________________

81 81 82 82 82 83 83 83

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Save Custom layout ______________________________________ Custom layout ___________________________________________ Simple layout ___________________________________________ Typical layout ___________________________________________ Expert layout____________________________________________

83 84 84 84 84

6. Options ___________________________________________ 84 Analysis…______________________________________________ Look for complex patterns _______________________________ Extra wave degrees_____________________________________ Indicate reversal on > 50% retrace (Modern rules) ____________ Analyze last xxxx records________________________________ Show analyzing _______________________________________ Show confirmation dialog box ____________________________ Show ALERT INSPECTOR when… __________________________ Check Signals _________________________________________ Automatic Analysis update_______________________________ Limit to once every … __________________________________ Automatic Analysis on blank chart_________________________ Revert to old 6.2 interface _______________________________ Target Zones ____________________________________________ Wave Inspector __________________________________________ Snap wave labels to extremes _______________________________ Export Summary sgnals ___________________________________

85 86 86 86 87 87 87 87 87 88 88 88 88 88 89 90 90

7. Price data _________________________________________ 91 Save price data… ________________________________________ Change price data location… _______________________________ Export price data location… ________________________________ Truncate price data… _____________________________________ Show truncated price data __________________________________ Compress price data ______________________________________ Correct bad ticks _________________________________________ Edit price data ___________________________________________ Perform stock split _______________________________________

91 91 92 92 93 93 93 94 95

7. Screen ____________________________________________ 95 Open __________________________________________________ Save___________________________________________________ Save as ________________________________________________ Close __________________________________________________ Recent Screens __________________________________________

96 96 96 97 97

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8. Window___________________________________________ 97 9. Help______________________________________________ 97

INDEX ___________________________________________ 99 Prognosis Software Development License Agreement ____ 103

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INTRODUCTION

1. General ELWAVE, a Windows based software program from Prognosis Software Development, has been specially designed for investors in order to apply the "Elliott Wave Principle" profitably, generally regarded as the most successful forecasting method ever discovered, but difficult to apply because of its complexity. In addition to its uncanny ability to forecast future events, the “Elliott Wave Principle” is known for its complexity. There are numerous rules and guidelines, which have to be applied objectively and consistently. This requires a considerable amount of experience, time and emotional control in order to make a high quality analysis of the markets and to make objective and consistent analyses, which is extremely difficult for humans to accomplish. Not so for a computer. Once the rules have been programmed, the computer can perform the analysis quickly, in an objective and consistent way. Of course, programming the experts’ knowledge is a very complex task to accomplish. It has taken many years of research, designing and programming the rules to achieve the results ELWAVE generates today. Particularly since a true Elliott wave model has been programmed, which is capable of analyzing the fractal nature of the markets by searching and approving patterns in patterns, in patterns and so on. ELWAVE comes in different modules, so every investor may choose to purchase the modules that fit his needs. In its full version the software is able to automatically detect Elliott Wave patterns in price information, thereby eliminating the need of many hours of tedious work, as well as to provide trading information. ELWAVE searches for the best alternatives and will show a clear outlook, presenting the most preferred alternative first. Even more important, it will summarize results, so the user gets a clear outlook and the probabilities as derived from the Elliott Wave Principle.

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Although the analysis is done automatically, ELWAVE is not considered to be a black box! ELWAVE gives full insight in and information about the patterns of Elliott Wave by displaying all rules and guidelines, as well as the Fibonacci relationships. This way you will be able to detect why a wave count has been approved or rejected. Because of the availability of this information the software is not only a trading tool, but also a great learning tool. Not only will ELWAVE help you to unravel the Elliott Wave, it is also fun to use! Operating system: ELWAVE is available for Windows 95/98/2000/XP and Windows NT 3.51 (or higher). The Windows 95/98/2000/XP and NT version is truly object oriented with a 32-bit design for fast and more stable performance. It is highly recommended to use ELWAVE together with Windows XP

2. Installation

• • • • • • •

Installation of ELWAVE requires some simple steps and will install itself on the fly: The software is advised to run with Windows XP, but it is compatible with all Windows versions. Run Microsoft Windows. Insert the CD in the CD Rom drive, which normally is referred to as drive D. Choose Run and type in the command line D:setup if the installation menu does not appear automatically. Choose to install the regular version that requires a hardware lock. Installation will start and guide you through automatic installation. Windows NT users must make sure to have administrator access in order to install all files needed. After installation, insert the hardware lock in the printer port. Double click the ELWAVE program button. The program will extract and install itself from CD. Follow the messages on your screen. The installation program will ask you to specify a directory in which ELWAVE will install itself. Insert the next

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disk when asked for. After you have clicked the FINISH button, wait patiently until the installation is complete. The software may ask, when encountering previous versions, to keep files you have used before. Please read these messages carefully. ELWAVE will create a program window of it’s own. To start the program double-click the ELWAVE program icon

3. Describing the modules in ELWAVE The BASIC module is required for every other module of ELWAVE. It is a standard technical analysis package that does charting, indicators trendlines and supports all sort of other technical tools. On top of that it gives you the possibility of manually labeling the waves in the chart according to the Elliott Wave theory. Once the chart has been labeled by you, you can have the software check this and it will show misstakes if any. In addition it is an excellent edcational tool on the Elliott Wave, showing every pattern, rule, guideline and Fibonacci of the waves. To explore this in depth go to the chapter Manual Wave Count. The AUTOMATIC ANALYSIS module is the heart of the software, analysing the chart according to Elliott wave rules and guidelines, fully automatically. The chapter on this module will briefly describe how our Elliott Wave model works, a short description of analysis options, the difference between the CLASSIC and MODERN rules and how to inspect the alternatives, ELWAVE has found. Our Automatic analysis uses a true Elliott Wave model to detect valid patterns and to determine the future direction of prices, thus enabling you to forecast market issues more accurately The TRADING SIGNALS module summarizes the outcome of the automatic analysis in a concise way, looking for trading opportunities and listing the outcome in a separate window called SUMMARY INSPECTOR . The chapter on this topic explains the outcome and interpretation of the signal indications as well as further explanation of the SUMMARY INSPECTOR, the ALERTS INSPECTOR and the SIGNALS INSPECTOR. The TARGET CLUSTERS module makes Fibonacci price and time projections. Its chapter explains how to interpret time projections

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using the TIME CLUSTERS indicator or the Target zone, which can be shown in the chart. The SCANNING module will search through and automatically analyse huge portfolios for opportunities according to your criteria. Its chapter will describe how to make ELWAVE select the most promising investments or trades all by itself, or according to criteria you have specified yourself. Using the scanning features ELWAVE will automatically scan, (re)analyse and present a list of stocks in a crystal clear way, saving you a lot of time in selecting the next big winners or loosers in the market. The EXPERT ADVISOR gives expert advise in natural language. The outcome of the SUMMARY INSPECTOR is reworked and presented in plain text in a separate dialog box for ease of use. The UDS module or Universal Data server takes care of the complex real time datafeeds for different data providers. Again this has been improved considerably in the latest version of ELWAVE

4. Interface Object Oriented interface The interface has been designed as a true Object Oriented Interface. This way you can access every object, e.g. indicators, targets, spirals etc., directly on the screen by clicking the RIGHT mouse button. This is one of the points that makes ELWAVE very user friendly and intuitive to use. In addition we have made the menu, as much as possible, compatible with standard Windows applications. The mouse is the most important device to the user. He can make the program do what he wants by pointing and clicking. According to the latest technology we have also applied "drag and drop" techniques extensively, which makes the software very intuitive.

Grab Grabbing objects, like trend lines and wave labels, is an important technique to enhance ease of use. Clicking on an object with the left 12 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

button and moving the mouse pointer while keeping the mouse button pressed does this. The object has “attached” itself to the mouse pointer, so you can reposition the object. Drag and drop Drag and drop is the next step after an object has been grabbed. By this means the user directs the mouse to an object, presses the left mouse button and while keeping the mouse button pressed down, drags the object to its correct position. When the object is on the right spot in the chart, the user releases the mouse button to drop the object. Right mouse button According to the latest technology, the right mouse button can be used to show the underlying properties in the program. You can click the right mouse button anywhere on any object. If it is possible to adjust properties of the object on which the mouse pointer has been double clicked, a menu will appear. This works for example on trend lines, channels, targets, wave labels and so on. Just try it! Dockable toolbars The toolbars (on top of the screen) which contain Wave Labels and Chart Objects, can be docked at the top of the screen or undocked to reposition them as you like (as a floating window).

5. Hardware requirements Minimum requirements • • • • • • • •

Windows 95/98/2000/XP or Windows NT 3.51 or higher. IBM compatible pentium 100 MHz. 4-8 megabytes of RAM. 30 megabytes of hard disk space. Mouse. Color monitor. 800 x 600 but screen resoltuion of 1024 x 768 or higher screen resolution. Data in eSignal, Metastock, ASCII file format or other supported formats.

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Recommended • • • •

Pentium 1.8 gHz or faster. 64 megabytes of RAM, 32mb or more for intra day analysis. 1024 x 768 screen resolution. 500 mb of hard disk space to be used as virtual memory.

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NEW IN VERSION 7 AND HIGHER . Calibration The Elliott Wave analysis engine that is at the heart of ELWAVE has always been recognized as being the best around. Now with this release of ELWAVE comes a new analysis engine that is even better than the previous, providing more detailed and more stringently checked wavecounts than ever. In particular what you will notice is that wave degrees are now calibrated to a specific percentage of growth to correlate closely with the magnitude of wave degrees as defined in literature. Apart from improving the analysis itself this offers new ways to use the software, in particular when used in conjunction with the Scan Inspector. By defining your scanning criteria for a specific wave degree you can now focus on those trades that concur with your investment horizon. For those customers who have incorporated their current ELWAVE version in their trading system setup it is still possible to switch back to the old engine to yield analysis results identical to those found by ELWAVE 6.2.

Full support for eSignal datafeed (requires UDS ServerFeed module) Our UDS ServerFeed module now offers seamless support for the eSignal TurboFeed datafeed. If you already have an eSignal account, please contact us to have the UDS ServerFeed module enabled. If you do not already have an eSignal account please visit http://www.prognosis.nl/esignal for options

Expert Advisor (optional module) The new Expert Advisor is one of the highlights in version 7.1. By reporting a clear outcome and explanation of the analysis results in plain English it greatly simplifies using the software. The Expert Advisor can be started by clicking the yellow balloon icon. These is a choice of commentary (‘English’ in the pre-release CD-ROM) or a specific ‘Trading’ setting that can spot trading opportunities.

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Quote Monitor ELWAVE 7.1 features an integrated Quote Monitor. At present this works only with eSignal and FXtrek data feeds. Support for other real time feeds will be added later.

Scanning Standard and Professional The Scanning Standard module now offers all the functionality previously offered by the Scanning Professional module. This means that you have more criteria to scan on. If your license includes the Intraday module you can also scan Intraday data files.

MetaStock 8.0 Support for the MetaStock file format has been updated to include full support for version 8.0 data files

Full support for Quote.com datafeed Our UDS ServerFeed module now also supports Quote.com (QCharts) From Lycos Finance. Please contact us for information on how to enable the UDS ServerFeed module.

Templates Templates are also new in version 7.1 and allow you to specify any set of indicators and indicator panes and charting style to be applied to any newly loaded chart. The Batch Processor, which can be used to analyze a long list of charts overnight also respects any indicators present in the chart and leaves these untouched. If you reload a saved .elw scenario file chart it will not be affected by the currently selected template.

Screens Screens can now contain unsaved charts and also the new Quote Monitor windows. Please note that if you do save charts as .elw scenarios or if you have the automatic scenario management enabled, screens will refer to the saved scenario files. This means that these charts will load exactly the way you left them and are not affected by the currently selected template.

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Wave Tree, Wave Inspector and Summary Inspector The Wave Tree, Wave Inspector and Summary Inspector windows are now docked instead of floating, making it easier to arange chart windows, quote monitor windows for example using the ‘Tile Horizontally’ and ‘Tile Vertically’ functions.

Quick Symbol Entry Toolbar Instead of using ‘Scenario|New|From…’ you can now use the QUICK SYMBOL ENTRY Toolbar to quickly open any chart without using the mouse! Just start typing the symbol , you could but do not need to click in the Symbol Entry toolbar first because it will automatically take the focus. Next press enter to load the chart.

The software will use the settings of the last time you have retrieved a chart. So if the last retrieved chart is an eSIgnal 1 minute chart, ELWAVE will do the same for the symbol entered. Additionally the software supports several toggles. For example typing “IBM, b” will retrieve a blank chart of IBM. Typing quick symbol: IBM,5,b loads a blank 5 minute chart. Typing: IBM,d loads daily and w weekly. You can use 1,5,10,15,30,H,D,W,M as time frames. Caps are not necessary. For UDS based dataformats the symbol entry is exactly that, so you will need to enter the exact and complete symbol in order for this to work. For some other formats, including MetaStock and KeyWord WallStreet this entry field works as a search field: if you type something for which there is more than one match a list will be shown from which to select. Please note that if the software finds scenario files with the same name as you typed, these will be listed in the toolbar. Click with the left mouse button or up/down arrow on your keyboard to select your choice.

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Automatic Scenario management The first time you load a new chart in ELWAVE 7.0 you will be asked if you want ELWAVE to automatically generate and maintain an .elw scenario file for your chart. If you choose yes, a scenario file is generated automatically to store your analysis results, trendlines and other settings. This scenario file is also reloaded if you enter the corresponding symbol in the Quick Symbol Entry toolbar. When combined with a properly configured datafeed this allows you to completely forget where your files are stored: just enter the appropriate symbol and you will get back the chart as you last saw it. You will also no longer be asked if you want to save changes when closing a scenario as this is now down automatically.

Automatic Analysis on open chart The second question that ELWAVE 7.0 will ask you if you open a new chart for the first time is if you want an automatic Elliott Wave analysis to be performed (requires Automatic module). By selecting yes and checking the ‘Remember choice’ ELWAVE will perform an analysis any time you open a new chart.

Batch Processor preserves existing Scenario settings The Batch Processor has been adapted to work together with the new Automatic Scenario Management feature of ELWAVE 7.0. Instead of overwriting the scenario created by ELWAVE the Batch Processor will now load the existing scenario, without the previous analysis (to save time) but with any indicators you may have added to the scenario.

Toolbar with various buttons A toolbar has been added to provide direct access to some often used functions: Save, Analyse, Print, Target Zones, Scan Inspector. Let us know which functions you would like to see added to this list.

Full support for TenforeQuoteSpeed realtime datafeed (optional) This release of ELWAVE features support for QuoteSpeed realtime and historical data from Tenfore, provided the Intraday module is

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enabled in your copy of ELWAVE and you have a subscription to Tenfore QuoteSpeed. To use this new feature, select ‘Scenario|New|From UDS…’ in ELWAVE and select TENFORE as shown below:

You can set the start date, end date and the resolution for the data to import. To enter a symbol directly, double-click ‘Manual…’, type the symbol and click OK to obtain a list of all matching symbols. Symbols are case-sensitive! To get a chart from Intel Corporation for example, enter INTC, not intc. Select the symbol you want and click OK to load the chart. Alternatively, you can double-click entries A to Z to obtain a list of all items that start with that letter. Notes: There is a limit to the number of days of historical data available from Tenfore To get more history, choose 5 minute, 10 minute etc. Tenfore support is available as a separate optional module. For information on pricing please check our web site.

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Full support for KeyWord Wall$treet (Dutch/Belgian customers only, optional) Just like eSignal now ELWAVE features a fully integrated, seamless solution for Wall Street, in order to retrieve historic data and to keep the chart updated in real time. The previously used “manual” DDE solution is still available, even without the UDS module, but it lacks ease of use and is more tedious to maintain. ELWAVE now distinguishes between Wall$treet Daily and Intraday scenario files

Expert Advisor In version 7.1 we have released the expert module, which explains the current analysis in plain natural language.

Scanning Professional In version 7.1 we have included the Scanning Professional module with the Scanning standard. Herewith you can define very complex criteria for the Scanning to find those stocks according to your Elliott rules.

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GETTING STARTED

Attention: You will need the special “Automatic analysis” module to automatically analyse price data according to the Elliott Wave Principle. In addition, you will need the “Trading signals” module to generate trading indications automatically. In order to use the scanning you will need the Basic, Automatic and Trading Signals modules.

In this chapter we will introduce you to our Elliott Wave software. We will show you how to use ELWAVE without the necessity of being an Elliott Wave expert. Now Elliott Wave analysis and trading is just a few mouse clicks away. As a beginner or when only using the automatic features of ELWAVE you normally will not need the to study the advanced topics in the separate booklets. ELWAVE does the job automatically for you. Should you become interested in how ELWAVE does it and how the Elliott Wave theory works, then you can be assured to know that the software contains expert information as well. For experts we have a separate booklet named “Advanced Topics” that explains the possibilities and advanced features in more detail. The chapter MANUAL WAVE COUNT explains how to make an Elliott Wave count yourself instead of have ELWAVE do it for you. Of course you have to be an expert to make a high quality count yourself, but fortunately ELWAVE is able to check the count, even if you have the Basic module only. In addition in this chapter you will find more information about the WAVE INSPECTOR and the WAVE TREE. After you have followed the steps listed below, you should be able to use ELWAVE competently. We have assumed that you are familiar with the Windows environment, the way the menu works and so on. If not, you should study your Windows manuals. If you are looking for an explanation on specific topics, check out the chapter “TECHNICAL TOOLS-EXTRA INFORMATION”. Here you will find more information on the loading and saving of data and scenario files, the price chart window, trend lines, channels, time ratio ruler and real-time data feed. For your convenience we have also added a chapter, that describes the menu options one by one, called “USING THE MENU”. Naturally we have included a separate booklet on the basics of THE ELLIOTT WAVE PRINCIPLE and a detailed description of the Elliott

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Wave patterns. It is not necessary to read every chapter in order to use and apply ELWAVE, nevertheless it is recommended for the curious minds amongst you. This separate booklet includes the use of INDICATORS and how to combine it with Elliott Wave. Not all the indicators have been explained, because many books on interpretation and use of these indicators are available. We recommend obtaining additional information on indicators from other sources as well. In this section you will learn the essentials in order to commence using the program right away, assuming you have purchased the full End of Day or Intra day version. If you have the Basic version only, please refer to chapter “Manual Wave count”.

1. Quick start ELWAVE Once you have started ELWAVE by selecting Programs from the main menu of Windows and next select ELWAVE from the program list, or click the ELWAVE program button ELWAVE 7.1.lnk

on your desktop, the following, empty screen will appear:

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Choose from the Chart menu in the left top cornerthe menu item New chart and select the PROVIDER in the left top of the dialog box, that will appear as shown below.

Now you can connect to your favorite data provider, like eSignal, to retrieve intraday data and let ELWAVE automatically update prices and analysis in real time. Or just load data files, like for example Metastock or ASCII files. More explanation can be found in the next chapter. Let us take eSignal as an example to load a chart. We will load the chart for the Dow Jones of which the eSignal symbol is “$indu”. Loading other financial items ofcourse requires to input the exact symbol for that item. In the dialog box below we are requesting a 5 minute chart from eSignal:

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Now press the OPEN button in the dialog box to load the chart. On the right top corner of the dialog box you can set the first and last date of the price data to retrieve. Normally you would like to retrieve as many data as available until the current moment. Therefore set the first date at a very early date and check the box before TODAY to make sure you will always retrieve price data up to the last moment. Next the chart will appear in the format as set by the template selected before loading the data, see the dropdown box in the screen shot below. Please note that by default ELWAVE will us its automatic compression, to make sure that all data will fit in the chart window. If you prefer a preset daily, 5 min. or other compressions, click with the right mouse button on empty chart space, next to where the chart bars are displayed and select compression from the menu that appears.

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After the chart has been loaded, choose Analyse entire chart from the Analyse menu or press the ANALYSE button at the top (next to the printer button)

Now ELWAVE will analyse the financial item of which the chart has been loaded and selected. Please note that if you have loaded multiple charts, the selected window chart, to be changed by clicking on the window with the mouse, will get analysed if you press the button mentioned above. Depending on the speed of the computer, the amount of data loaded and the complexity of the analysis, ELWAVE will need from a couple of seconds to 1 minute or more to finish the analysis. Once finished the following screen will come up by default, also referred to as the “simple layout. In the example below data of the Dow Jones has been analysed.

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Press the TARGET ZONE button on the top of the chart window,

to draw the TARGET ZONE and expected market PATH. Now the chart will look as in the following picture wherein support and resistance areas, based on Fibonacci price and time relationships, have been added in a red color, while the market path is yellow.

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From the chart you will notice that shorter term on Intermediate and Minor degrees, as shown in the SUMMARY INSPECTOR , the trend is up. The one higher wave degree, Primary, is still undecided for which reason it shows higher as well as lower targets in the chart. The Target Zones clearly show first an utrend and later again a risk of a downtrend. To make it even easier for you we have added a new, separate module called the Expert Advisor. Press the EXPLAIN button in the toolbar to show what the Expert Advisor has to say

This gives the following result:

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The Expert Advisor works rather simple. By pressing the drop down in the Expert advisor dialog box, you can choose between ENGLISH and TRADING. Choosing English will explain the current status of the stock under investigation. In fact it is combines an explanation of the Summary Inspector with additional information as for example what to look for when searching for trading opportunities. Choosing Trading in the drop down box will show you – only if triggered- trading advise. Several trading setups have been defined. If a trading setup is detected or triggered in ELWAVE, the Expert Advisor will show very specific information, otherwise it will be empty. See the example bellow.

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Selecting English in the drop down button will show the following:

ELWAVE will present all information, after completion of the analysis in the chart, in the Expert Advisor and in its SUMMARY INSPECTOR.

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In the chart the software will show the Preferred wave count (other counts are in the background, but normally you will not need this), Targets of the SUMMARY INSPECTOR (Diamonds) and of the wave count displayed (vertical bars with intersections), Exits of the SUMMARY INSPECTOR (Triangle). At the bottom of the screen ELWAVE will show the most important piece of information in a separate window called SUMMARY INSPECTOR, which will summarize all validated Elliott alternatives into a clear outlook. Now take a look at the SUMMARY INSPECTOR to spot trading opportunities in the EASI indicator column. The more positive indications are shown, the stronger the uptrend and vice versa. From large to small this window will list information on multiple time frames, which are called wave degrees in Elliott Wave terms. The more timeframes or wave degrees (the first column in the SUMMARY INSPECTOR) agree upon a positive or negative outcome, the higher the probability of the next price move.See the next screen shots of ELWAVE as a first example. First a very positive outlook for the Dow in 1993, see the Summary Inspector. We all know what happened thereafter.

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A Negative example is shown below. All trends are down and 2 negative readings in EASI are there, forecasting lower targets to reach.

In the screen shot on the next page we have explained the most common and most important features of ELWAVE. Please note that clicking on chart area or indicators with the right mouse button will allow you to change its properties, while clicking on it with the left mouse button will select it for deletion or dragging. Selecting a button, for example the trendline button, with the left mouse button, keeping the mouse button pressed and simultaneously dragging it and next dropping it in the chart, will add objects to the chart.

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It is that simple! Please note that you can easily adjust the layout of the information presented. By default ELWAVE will show analysis results in the “Simple Layout” format, which is advised for non-expert users. Under the Analysis menu you will find several standard layouts as well as a custom layout, which you can define and save yourself, to meet your preference.

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2. Additional topics The chart window Scrolling

Tip: You can change the properties of all objects in the price chart and the indicator pane by clicking with your left mouse button on these objects. Alternatively you can double click with the left mouse button to change its properties. Notice that the mouse pointer will change when moving over an object.

This function will allow you to easily find that section of the chart that is of special interest to you. To scroll the chart press the scroll bar positioned at the lower left corner of the chart window. To scroll left press the left arrow or left of the scroll button and vice versa to scroll right. If you scroll the chart far enough to the right, empty space will appear where the price data stops. Charting styles To change the charting style, choose from the menu on top of the screen the option View, next select the menu item Charting styles… If you select this menu item a dialog box will appear, where you can select one of the following styles: • OHLC Bar This chart displays the price chart as bars, including the open high and low closing prices. Using this chart you will see three times less detail in your price chart. • HL Bar This charts displays the price chart as bars without Open and Close. Using this chart you can display the maximum number of bars. • Line This chart displays a line graph by connecting the closing prices. • Candlestick The price chart will be displayed as a so-called Candlestick chart. • Elliott OHLC Line This charting style has been specially designed for the Elliott Wave. Each time interval in the price chart will display the Open, High, Low and Close in the order they

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•

occurred, provided this information is available which is not the case in normal End-of-Day charts. Elliott HL Line This charting style has been specially designed for the Elliott Wave. Each time interval in the price chart will display the High and Low in the order they occurred, provided the information is available.

•

Alternatively you can position the mouse pointer above empty space on the price chart and double click the left mouse button. A dialog box will appear in which you can change the charting style by selecting the charting style of your choice from the drop down box. We will explain the dialog box below: Graph type

As explained above under charting styles. Component

Select if you would like to change the setting of for example the High-Low bar, the Open and so on. You can change pixel size or color settings. Color

Change the color of the Bar, line, Candlestick etc. Size

Change the size (in pixels) of a Bar, Line, Candlestick etc.

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Zooming

NOTE: the program will remember the steps you have made while zooming in. NOTE: the zoom selection will only apply to the time period (Xaxis) not the price scaling (Y-axis), which will scale automatically!

The zooming function allows you to take a detailed look at a specific section of the chart. First click the right mouse button in empty chart space and select Zoom in from the menu. Alternatively you can select Zoom in from the View menu. The cursor will change to a magnifying glass. Click the mouse at the beginning of your selection and drag the mouse to the end of your selection to select the area you would like to see in detail. Release the mouse and you will now see in detail the selection you have made. By choosing the menu item Zoom out, you will return to your previous chart view. The Zoom Reset option will reset all the zooming steps you made, and show the entire chart plus an empty space to the right. Scaling The scaling of the Price (Y-axis) will be done automatically by the program in such a way so that the high and low of the chart will always be visible. The Y-axis can be adjusted by clicking the left margin. In the margin you see two kind of buttons, which can be dragged or clicked. If you click the button on top, you can adjust the margin at the top of the chart. By clicking the button at the bottom you can adjust the margin below the low of the chart data. For example one can increase the available space above the high of the chart, to reveal all wave labels, by dragging the border of the button down or click just under the button in the margin. Clicking just under the button will increase the area above the high. To increase the margin under the low of the chart, in order to reveal all wave labels, drag the border of the button up or click just above the button in the margin. Clicking above the button will decrease the area under the low. Please see the following:

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Click here to decrease top margin of price scaling

Drag border to readjust the margin

Click here to increase top margin of price scaling

Click here to increase bottom margin of price scaling

Click here to decrease bottom margin of price li

Compression Using this option, you can compress the time period from minute, daily to weekly to fit a longer time period in your chart view or input a user-defined compression as you like. Normally you won’t need this option because ELWAVE will compress automatically, if automatic compression is on. This is very convenient, the only drawback is that gaps like those in daily graphs don’t appear. To compress time periods (X-axis), press the right mouse button and select Compression from the menu. Then select the compression of your choice. Resetting the compression will still show the last price data of the chart. The software will make calculations to fit as many data points in the chart window as possible.

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Detail level Detail level is linked to wave degrees. You can determine up to which wave degree you would like to show the wave labels and attached objects. Click the scroll bar at the right underneath the chart to adjust detail. Rescaling of panes added to the price chart The size of the panes for indicators, Fibonacci and volume can be changed by grabbing the borderline between the pane and the price chart and dragging it to a new position.

Trend lines Conventional technical analysts connect lows or highs when drawing trend lines, while Elliotticians connect the points where waves begin or end, which could make an important difference. In ELWAVE both methodologies are supported. A trend line can be inserted anywhere in the price chart, even in the indicator window, which we will explain later. In this program a trend line is an object, like all the objects in the “objects” window or box.

To place a trend line, grab (like always; click on the trend line with the left mouse button, while keeping the mouse button pressed) the single trend line from the CHART OBJECTS box, drag the trend line to the place where it should be inserted and drop it (by releasing the mouse button). Then click precisely on the trend line, this way it is selected and you can adjust it. After selecting the trend line, two handles will appear (small square boxes). To resize or move the trend line, grab a handle and drag it to the right position. If you drag it on a wave marker the trend line will attach itself to this wave marker. This means it will be repositioned when you grab and drag the

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wave label later on. Repeat this for the second handle of the trend line. To change the properties of the trend line, position your mouse pointer exactly on the trend line, press the right mouse button and choose properties. Alternatively you can easily change the properties of any object by double clicking it with your left mouse button. Special feature Watch what happens when you drop the trend line on a manually placed wave label! (This does not work on automatic wave counts, so first choose Convert to wave count from the Analyse menu) It will automatically connect with the previous wave label. For example dropping the trend line on wave 4 will automatically draw a line from wave 2 to wave 4 (with an automatic extension). Dropping it on wave B will connect the line with the previous wave 5. Practice this option now, by dropping trend lines on any labels.

Channels Channeling is an important technique used by Elliott Wave analysts in order to see realistic price targets, and therefore this is thoroughly supported in this program. Channels can be inserted manually or the software can insert them automatically after automatic analysis of a chart. The latter channels can not be selected.

The following describes how to insert channels manually in the chart. Like trend lines, a channel is an object. Channels can be dropped anywhere in the chart. Then select the channel by clicking on it and adjust its position by grabbing the handles.

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A more convenient way to use channels is to label the chart first and then grab the channel icon from the objects box, drag it to the wave label which you would like to channel and drop it on this wave label. Notice that dropping the channel on wave label (II) will connect this wave label with the origin of wave (I) and draw a parallel line from wave (I). Dropping the channel object on wave label (III) will connect waves (I) and (III) and draw a parallel line from wave (II). Logically dropping it on wave (IV) will connect waves (II) and (IV) and draw a parallel from wave (III). This also works in corrective waves, where you can drop the channel on wave label (B). Don’t hesitate to try this now! Of course, you are not obliged to drop the channel on a wave label. You can drop a channel anywhere you like. To resize or reposition the channel click on one of the trend lines of the channel and three handles will appear. The handles work in the same way as those of the trend lines mentioned in the above section. The only difference is that the parallel line will move a long with the base line. The handle on the parallel line can be used for repositioning the parallel line. Naturally this line will always keep its parallel position. To change the properties of the Channel position your mouse pointer exactly on the Channel, press the right mouse button and choose properties. Alternatively you can easily change the properties of any object by double clicking on it with your left mouse button.

Speedlines Grab from the chart object toolbar the Speedlines button and drop it in the chart or on a manual wave label. Click on the upper speedline to adjust the drawing of the speedlines, handles will appear which can be used to readjust the speedlines.

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With respect to uptrends, connect the beginning of the speedline or the first handle to the low and the second handle to the first important high. The market should find support at the 2/3 speed resistance line. If this breaks, most probably the lower degree pattern has been completed and a wave of higher degree is in progress. If the market breaks below the 1/3 line it is highly probable that a new low is just around the corner. Theoretically all speedlines should project important support and resistance points.

Gann Fann Use these tools to detect simetry in the markets. Place it on a top or a bottom where historic prices touch the trendlines at the left, even if you have to place the origin of the Gann Fann above the top or below the bottom in the price chart.

Spirals Logarithmic Spirals can be placed anywhere in the chart through "drag and drop". You can find the Chart object box on top in which you will find the Spiral button. Move the mouse pointer to the window, click the left mouse button on the Spiral in the CHART OBJECT box, keep the mouse button pressed, and drag the Spiral to its correct position. Release the mouse button and the Spiral will position itself on the spot you have indicated. Notice that spirals can be attached to wave labels as well.

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These spirals use the golden ratio of 1.618 and turn left. Spirals not only show a price target, but also a time target. However, it is of paramount importance to adjust the scaling of Y- and X-axis correctly, which needs a lot of experimenting. To change the properties of the Spiral, position your mouse pointer exactly on the Spiral, press the right mouse button and choose properties. Alternatively you can more easily change the properties of any object by double clicking it with your left mouse button.

Trigger lines Trigger lines can be placed anywhere in the chart with "drag and drop". You can find the Chart object box on top in which you will find the Trigger line button.

Move the mouse pointer to the window, click the left mouse button on the Trigger line in the Chart object box, keep the mouse button pressed, and drag the Trigger line to its correct position. Release the mouse button and the Trigger line will position itself on the spot you have indicated. Notice that Trigger lines can be attached to wave labels as well. If a real-time feed has been activated, in the Intra day version running under Windows 95/98/2000 or NT, Trigger lines will generate a sound the moment the price action penetrates the trigger line up or down. Copy a sound file with the extension “.WAV” file to the root of drive c:\ before you start the program to enable this. These Trigger lines can be inserted at specific places in the pattern to generate warnings of possible Buy or Sell signals. To change the properties of the Trigger line, position your mouse pointer exactly on the Trigger line, press the right mouse button and choose properties. Alternatively you can more easily change the properties of any object by double clicking it with your left mouse button. 41 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

Golden ratio Time Ruler The TIME RULER can be placed anywhere in the chart with "drag and drop". You can find the CHART OBJECT box on top in which you will find the TIME RULER button.

Tip: Dragging one of the controls of the TIME RULER and pressing SHIFT when releasing it near a top or low, will force the TIME RULER to connect exactly to that high or low!

Move the mouse pointer to the window, click the left mouse button on the TIME RULER in the Chart object box, keep the mouse button pressed down, and drag the TIME RULER to its correct position. Release the mouse button and the TIME RULER will position itself on the spot you have indicated. Notice that TIME RULERs can be attached to wave labels as well. If you click on the horizontal line of this time object exactly, you will select the object. Two controls will appear, which you can grab and drag to reposition the object as well as to drop it on a wave label. If the object is selected press DELETE to erase the object. The TIME RULER object displays the Golden ratio and facilitates finding such time relationships. You could for example use the time object to find a date for a new future low by connecting lows. The same goes for major highs, but of course then you have to connect major highs or try to find clusters by connecting all major reversals. If you put the origin of the line at the first major low and the1.00 point at the second low, you will have a forecast for the following major low at point 1.62 (which is 38.2% of the length of the beginning of the line to point 1.00) and at point 2.62 (which is 61.8% of the afore mentioned length). If you experiment with this tool, you may find interesting Fibonacci time clusters that forecast future price action. To change the properties of the TIME RULER, position your mouse pointer exactly on the TIME RULER, press the right mouse button and choose properties.

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Alternatively you can more easily change the properties of any object by double clicking it with your left mouse button.

Simulation Strong educational features of the program are the powerful simulation features. You can access these features either by selecting Simulation inspector from the View Menu or by choosing Truncate Price data from the Price data menu. The SIMULATION INSPECTOR looks as follows:

It works rather straightforward; first determine with the hairline in the chart where to start the simulation, then invoke the Simulation Inspector and press the START NEW SIMULATION button. Input the record number and the future data will be eliminated. Now press the + button to add data to the chart and press BUY or SELL when your trading strategy, in conjunction with the outcome of ELWAVE or not, calls for action. This way you can really learn how the Elliott Wave program works and determine your most preferred trading or investment strategy. Truncate the price data wherever to investigate what the analysis looks like, if future data were unknown to ELWAVE. Alternatively you can choose the TRUNCATE PRICE DATA option, move the mouse pointer over the chart area where you would like to truncate the chart and watch the right end part of the

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status bar for the index number, which has to be inserted in the TRUNCATE dialog box. Next have ELWAVE analyse the chart automatically by choosing from Analyse menu the option Analyse entire chart and use CTRL-1 to CTRL-9 keys to add data bit by bit. (Please note that Numlock must be on). CTRL-1 will add one data point or bar, CTRL-2 will add 2 data points, CTRL-3 will add 4 data points and in the same way a higher number will double the number of data points added at once. When new data is added the software will check if critical price levels have been penetrated. If so, it will update the analysis and refresh information in the SUMMARY INSPECTOR and show the ALERT INSPECTOR, which show rules that have been triggered.

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3. SCANNINGeasy and simple… Now, if you have purchased the scanning module, it is even simpler to operate ELWAVE. This module puts an awesome power in your hands when searching for trading opportunities according to your own criteria. One of its most popular uses is to let the Scan Inspector analyze a large portfolio of stocks every day or night, working while you are asleep, fully automatically. The next step and only step for you would be to scan the already analyzed charts for your trading criteria, which will take just a minute. Looking for charts with only positive or negative readings? ELWAVE will list them for you!

Scan Inspector Choose View from the main menu and select Scan Inspector. The Dialog box of the SCAN INSPECTOR will appear immediately as shown below.

Alternatively you can use CTRL-S as a shortcut or press the SCAN button (encircled above).

INSPECTOR

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If you are using the SCAN INSPECTOR for the first time, You will need to define your list of stocks, while conditions sets already have been predefined. To define a scan list press the EDIT button in the top left corner next to the SCAN LIST drop down box, which displays “US stocks” in the above screen shot. The following dialog box will appear:

Press the NEW button to make a new list or REMOVE to delete one. Press the ADD button to add items to a newly made or already existing list. Selecting an item in the list and pressing the REMOVE button (under the ADD button) deletes the item. If you press the ADD button the following SELECT SYMBOL dialog box will appear:

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This is exactly the same dialog box as when selecting New chart from the main menu. In this example the eSignal dialog box is shown. However, selecting another datavendor or data format in the top left corner of the – next to PROVIDER- will show a different interface. This means you can add items from different sources or data vendors to your list. Now insert a symbol in the SELECT SYMBOL dialog box, specify period and timeframe, and click OPEN. Repeat this for every item you would like to add.

Analysis Batch processor Select from the SCAN LIST which list of items to scan for by pressing on the drop down button of the SCAN LIST in the left upper section of the SCAN INSPECTOR dialog box First you need to analyse the items in your scan list or to update the analysis with the latest price information. Press the ANALYSE button in the dialog box to do so. 47 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

On the next page you will find the dialog box that will pop up. It is recommended to use the default settings as shown in the dialog box, apart from the printer setting, which optionally makes ELWAVE print every chart automatically.

Pres the START button in the dialog box to start analysis. Once the analysis is completed, which may take a while, go back to the previous dialog box by pressing the CLOSE button.

Scanning for trading setups Press the drop down button of the CONDITIONS in the right upper section of the SCAN INSPECTOR dialog box to select the criteria or conditions set.

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Please note that you can make as many scan lists and conditions sets as you like. For your convenience we have already predefined the most important conditions to scan for. Choose for example the already defined “3 positive any wave degree” list to select stocks that have a high probability of a strong uptrend, or choose “3 negative any wave degree” to find stocks that have a good chance of being in a downtrend.

Press the SCAN NOW! button to start scanning your list for the criteria selected. The results will be presented in the window in the dialog box. Click on the ACCEPTED tab to see the items that comply with the conditions. Click on the REJECTED tab to see items that were dismissed. Press the SHOW DETAILS button to show the SUMMARY INSPECTOR of your selected item in the ACCEPTED or REJECTED tab Additionally you can sort the outcome on several columns as visible on top of the results window. By default the list is sorted on “Name” You can also ask the Expert Advisor for its opinion on each stock by first selecting te stock in the ACCEPTED or REJECTED Tab and next pressing the EXPLAIN button in the SCAN INSPECTOR Dialog box.

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USING THE MENU Next we will explain how the menus work and what the commands do. The menu works in the same way as in most Windows programs. If you are a novice to Windows, consult your Windows manuals. First time you chart ELWAVE, it will show an abreviated main menu on top of the screen. Once a chart has been loaded the full menu will appear. From ELWAVE 7 versions the Scenario menu item has been renamed to Chart.

1. Chart The Chart menu is used to create a new Chart window in which first to load your price data and next to analyse the chart according to the Elliott Wave Theory. Furthermore you should use the Chart menu to save and load scenario files, which contain your manual wave count or your automatic analysis. A scenario file will not only remember the wave count, trend lines, channels etc., but also the indicators and panes as well as the layout of your scenario file. In accordance with Windows standards you can also find the Print menu items under the Chart menu, as pictured below.

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To access the Chart menu click on Chart with your mouse and choose the correct menu item.

New Chart Select the Chart menu and choose New Chart and next select your data provider from the list in the drop down box at the left top of the SELECT SYMBOL dialog box. The supported data formats are ASCII, CSI, eSignal, Metastock, FutureSource, Fxtrek, Keyword Wallstreet, Market Maker, Taipan, Tenfore, Quote.com, Omega Global server, TC2000, TechTools, Ticks R’US and more coming. Depending on the provider, the dialog box for retrieving price data will be different, since every data provider uses its own format. Now, in the latest version, ELWAVE supports a seamlessly integrated support for retrieval of real time data. This means a zero maintenance solution; just type the symbol in the Symbol field on top at the left of the ELWAVE screen or retrieve the price data via the Select Symbol dialog box as shown below. As soon as the price data is loaded, ELWAVE will retrieve every new tick or changes in price data of the symbol and

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update the chart automatically. This is supported for eSignal, Tenfore, Quote.com and Keyword Wall $treet. eSignal

To begin with the eSignal dialog box; once you have selected the data provider, type the Symbol in the SYMBOL field, set the begin date and end date in the DATE field, choose the RESOLUTION or time frame (Daily, 1 min, 5 min etc) and select the OPEN button to import new data. Please note that checking the TODAY box will allways load price data up to the last moment. Otherwise real time data can be retrieved by using the DDE server. Then you first have to load the price chart, for example ASCII data and then connect with the DDE server. To do so, choose Chart from the main menu, next New Chart and then choose in the PROVIDER field DDE SERVER.

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DDE SERVER

Skip this section if you have eSignal or one of the other data feeds that support real time automatically. . It is imperative that your data vendor supports a so-called DDE link. If you can establish DDE links in, for example an Excel spreadsheet, you can do the same using ELWAVE. See also the special topic “Real-time data feed” in the advanced booklet. This has replaced From realtime datafeed (intra day version only) to collect real-time data from scratch. Wait until the chart appears, which will happen as soon as sufficient ticks have been collected. To fill out the START REALTIME DATAFEED dialog box, see advanced topics or our website www.prognosis.nl for an example. You need exact specifications from your data vendor to fill out the DDE SERVER field and the TICKER(Topic) field.

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Of course an automatic analysis will only be realistic if enough data points are available, so you will have to wait for 500 data points or 2 days, before choosing automatic analysis. After choosing this command and completing the real-time feed dialog box, ELWAVE will show a new chart window saying ”waiting for sufficient data to display chart” DO NOT change, save or do anything before the chart data appears in the chart window.

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ASCII

Cruise to the directory where your files are located. Select the file in the pane at the right and click OPEN. If no file names appear in the list box, you will have to navigate to the directory where you keep your files by clicking on the drop down box next to LOOK IN, click on the drive or directory to list its contents. Please note that only the Intra day version supports intra day files. Selecting the drop down arrow next to the FILES OF TYPE field allows you to change again to another data format or data vendor. On choosing ASCII files a dialog box will appear, where you can click the file in the section at the right to select which file to load. Load the ASCII file of your choice. Files with extensions like *.prn will be displayed automatically, otherwise fill in the correct file name to open the file. After pressing the OPEN button a second dialog box will appear.

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Specify the correct date format!!

DATE FORMAT

Here you can define the format of your ASCII file in order to load it correctly. Specify the correct items and the correct date format for each column by clicking on the down arrows in the combo boxes and select the correct option. Please note that the format DD/MM/YYYY is equal to DD-MM-YYYY as listed in the predefined formats in the dialog box. COMMA-DECIMAL

Specify here if your data file contains a comma or decimal seperator SKIP FIRST LINES

Sometimes the first lines of a data file contain information which you would like to skip. This can be defined here MOST RECENT DATE IN FIRST LINE

Some ASCII files (like CQG) contain the data in reversed order, where the last or most recent price information is on top 56 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

of the file. Check this box to make ELWAVE read a reversed file. ASSUME FORMAT FOR ALL SELECTED ASCII FILES

If the format of your ASCII files is always the same, just check this box so ELWAVE will remember the settings. If your ASCII file has been defined correctly click OK and the file will get loaded. When the file has been loaded, it is a good idea to save it as a scenario file by selecting Save as. The scenario file has a link to the correct ASCII file, so the next time you load the scenario file it will load the ASCII file directly. The data will be imported, so you can start a new Chart from scratch If you already have defined and saved a scenario file you could open this scenario file by selecting Open from the Chart menu, but more on that later. Metastock The same applies as above, the only difference is that FILE TYPE must be set to Metastock 3.1 or to Metastock, which should be used as a default!

Please note that you can select multiple items to load a couple of charts in one go. Click on the first item and click on the last while holdng down the SHIFT key or add items while pressing the CTRL key when clicking on it.

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Quote.com This pops up a different dialog box, which speak for itself. Next it will ask for the following information

Enter the required information to connect to Quote.com. Fxtrek Make sure you have the Fxtrek plug installed first.

TC2000 data

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The same applies as above, the only difference is that FILE TYPE must be set to TC2000 3.0 or TC 2000 4.0/4.1. CSI data The same applies as above, the only difference is that FILE TYPE must be set to CSI. FutureSource data The same applies as above, the only difference is that FILE TYPE must be set to FutureSource. TechTools data The same applies as above, the only difference is that FILE TYPE must be set to TechTools. Keyword Wall$treet or professional data The same applies as above, the only difference is that FILE TYPE must be set to Keyword. Go to the directory c:/WS or C:/ Wall street if the software does not so automatically.

Please note the 2 fields at the right top above the list of items. Change between Daily and Intraday if necessary. Omega Globalserver

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Only the Omega 2000 version is supported.

New Quote window Select this menu item to open a quote window to monitor your favorite stocks in real time.

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On top of the Quote window you can choose the scan list on the left. Each Scan list is a predefined selection of stocks or other financial items that can be retrieved at the press of a button. The same scan lists are used in the Scanning module. On the right top you will find a layout button, where you can edit and save the layouts you have defined yourself.

Open To open an existing scenario choose the Open command from the Chart menu. A dialog box will appear, which requires you to specify the file name of the scenario, the directory and the drive. ELWAVE will remember the directory that was used last. If the default directory is not the location of your scenario file, then browse to the right directory. Using this menu item you can retrieve previously saved “hand made” or automatic analyses. 61 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

The Windows 95/98/2000/XP OPEN Dialog box looks as follows:

The first time you use ELWAVE, you must use the example scenario files or import one of your own files, since no scenario files of your own have been saved yet. File name

Type the file name or select the scenario file with your mouse. If you double-click on the file name, the chart will load automatically. Look in

Here you can browse to the directory that contains your files. Files of Type

For now the only file type available is an ELWAVE scenario file. The program will add the extension “.elw” to the file name you have specified. Open

If you have typed the name of the file, confirm to load this file by clicking on the OPEN button. Cancel

Click the CANCEL button to leave the OPEN dialog box. No file will be loaded.

Close Select the Chart menu and choose Close. Use this command to close the active scenario file. If you didn’t save changes

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made to the scenario, the program will remind you to do so now. Choose YES if you want to save the changes using the same name. Choose CANCEL if you change your mind.

Save Select the Chart menu and choose Save. Choosing the Save command will save the scenario file instantaneously. This could be a “hand made” wave count or an automatic analysis. This way you can save your scenarios fast without renaming them. If a scenario is unnamed, you will be asked to provide a file name, if the software itself does not already suggest a name. If the scenario file already exists you will be asked if you want to replace it. Click OK if you agree and CANCEL to return without saving.

Save as Select the Chart menu and choose Save as. The Save as command is used to save the current scenario file the first time or to save it using a different name. This is useful in order to create alternative scenarios, which are derived from the active scenario. This could be a “hand made” wave count or an automatic analysis. This way it is easy to create as many scenarios as you like for the same security.

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File name.

Type the file or select the scenario file with your mouse. It is helpful to specify a file name, which is easily recognizable. For example if you are saving the preferred scenario of the Dow Jones, then type “Dowpref” or any other file name which reminds you what it is. Save in.

Here you can browse to the directory where you want to save your files. Save as Type.

For now the only file type available is the ELWAVE scenario file. The program will add the extension “.elw” to the file name you have specified. Save.

If you have typed the name of the file, confirm to save this file by clicking on the Save button. Cancel

Click the Cancel button to leave the Save dialog. Nothing will be saved.

Save as template

Tip: if you change your preferred scenarios often, you could include the date in the file name. The preferred scenario for the first of January 1999 could have the name “dj1999P”. This way you can keep track of the chronological changes of your preferred scenarios.

Select the Chart menu and choose Save as template. This command is used to save the current chart layout, including indicators and panes, so you can retrieve your settings easily.

Save all Select the Chart menu and choose Save all. Use this command to save all open scenario files at once. If a scenario is unnamed, you will be asked to provide a file name.

Export Metastock Select the Chart menu and choose Export Metastock. This command exports the price data of the active chart

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to a Metastock (intra day) file. This can be used to convert an ASCII data file to Metastock format.

Export ASCII Select the Chart menu and choose Export ASCII. This command exports the price data of the active chart to an ASCII (intra day) file. This can be used to convert a Metastock data file to an ASCII file.

Print Tip: To print the entire screen press the Print screen key, switch to your word processor, import the picture with CTRL-V and print it from there.

Select the Chart menu and choose Print. The Print command prints the active chart, including visible panes as well as THE SUMMARY INSPECTOR if you have checked this option in the Print dialog box

Print All Select the Chart menu and choose Print All to print all charts in different windows at once.

Exit Select the Chart menu and choose Exit. To leave ELWAVE choose the Exit command. As usual the same can be accomplished by simultaneously pressing ALT-F4 on the keyboard.

Recent Scenarios Select the Chart menu and choose one of the recent scenarios. At the bottom of the Chart menu you will find a list of the last scenarios which were loaded earlier. For your convenience ELWAVE, will remember the last four scenario files. This way you have quick access to the files you probably use most. Click on one of the listed files or press the number in front of the file.

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2. Edit The Edit menu is used to make modifications to your analysis. Some menu items allow you to change the wave count easily. Also you can delete selected objects with the menu item Delete. Pressing the Delete key can also do this. Furthermore it is possible to modify the properties of the selected object and to copy the chart or screen to the clipboard. The Edit menu looks as follows:

To access the Edit menu click on Edit with your mouse and choose the appropriate menu item.

Degree Up Select the Edit menu and choose Degree Up. This command only works on manual wave counts, not on an automatic analysis, and is specifically intended for Elliott Wave analysts. Choosing this command will alter the wave degree of the selected wave label, or group of wave labels, to a one higher wave degree. Note that you first have to make a selection by dragging the mouse over the area in the chart that contains these wave labels or select them with CTRL key pressed and left mouse click. When analysing the wave count of a security it often happens that you have to change the wave degree up or down, for example when an extension or a failure occurs. Instead of deleting the wave label(s) and inserting a wave label of higher

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or lower degree, you can change the wave degree immediately.

Degree Down Select the Edit menu and choose Degree Down. This command will do the same as Degree Up but will change the selection to a one lower wave degree. When analysing the wave count of a security it often happens that you have to change the wave degree up or down, for example when an extension or a failure occurs. Instead of deleting the wave label(s) and inserting a wave label of higher or lower degree, you can change the wave degree immediately.

Copy Chart Select the Edit menu and choose Copy Chart. Use this command to copy the chart to the clipboard. Then you can switch to another Windows application such as a word processor or a graphical program and paste the contents of the clipboard into the application. As opposed to a bitmap picture, this picture will be relatively small and the embedded objects can be edited in another drawing program.

Delete

Tip: to remove any pane position the mouse pointer on the pane border at the bottom of the pane, grab the border and drag it as high as possible. If you release the mouse button, the pane will be deleted.

Select the Edit menu and choose Delete when you want to delete a selected object. Note that you will have to select the object first by selecting it in the chart with a left mouse click! You can also press the DELETE key on your keyboard to delete the object. If you want to select multiple objects, you can select these objects one by one with your mouse, while keeping the CTRL key pressed. By dragging the mouse over a certain area of the chart, you can select all objects in this area at once.

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Properties Select the Edit menu and choose selection Properties... when you want to change the properties of a selected object. A dialog box will appear, where you can change the appearance and the parameters of the object, if available. Alternatively you can change the properties of any object by double clicking it with your left mouse button.

3. View The View menu is used to control the layout of your screen, except for the analysis layout, which can be found unde the Analyse from the main menu. Zooming will allow you to display a specific part of the price chart. You can choose to show, or to delete, indicator panes, volume, Fibonacci ratios and the display of other objects for example targets and channels.

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When a price chart gets crowded because you have inserted a lot of objects, you can choose to show a selection of the objects, instead of showing all.

Zoom In Tip: Alternatively you can use the mouse for setting chart properties and to zoo: click the right mouse button on empty chart space and a menu will pop up.

Select the View menu and choose Zoom In. First you have to select this command and then select the area of the price chart by dragging with your mouse. Then you can use this command to zoom in on the selected section of the price chart. ELWAVE will remember your entire zoom in steps and save them in a scenario file. With the Zoom in and Zoom out function you can show more, or less, detail in the price chart.

Zoom Out Select the View menu and choose Zoom Out. You can use this command to zoom out and go back one step at a time, repeating the same steps you did when zooming in. ELWAVE will remember your entire zoom in steps.

Zoom Reset Select the View menu and choose Zoom Reset. This command can be used to reset all zooming steps you have made while using ELWAVE. Once you have reset zooming the zoom steps will be lost! Don’t save the scenario file if you would like to retain these steps.

Hairline Select the View menu and choose Hairline. This command will allow you to toggle the display of the hairline.

Semi-log (linear) To change the scaling of the chart (Y-axis), choose from the menu on top of the screen the option View, next select the menu item Semi-log. If semi-log is the current scaling, you will 69 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

notice a marker in front of this menu item. To change the scaling to line chart, choose the menu item Semi-log (now the marker in front of it will disappear).Alternatively you can change the properties of the price chart by double clicking the right mouse button on any region of the price chart as long as it is not occupied with any object. In a semi-log scaled chart, the distance between each point is related exponential, by which means that the distance between 20 and 40 (a 20 point, 100% increase) should be the same as the distance between 40 and 80 (a 40 point, but still 100% increase).

Targets To toggle the display of target ratios, which are printed left of target lines, choose Target Ratios. This option is useful when the ratios, printed at the left of the target lines, diminish the clarity of the chart. You can choose to display target ratios and/or target values at the right or the left of the target lines or to display just the target lines.

Charting style

Tip: to adjust the detail level in the price chart use the scroll bar positioned near the left lower corner of the chart. This detail adjustment will show the selected objects and wave labels up to the wave label degree of your choice.

To change the charting style, choose from the menu on top of the screen the option View, next select the menu item Charting style… If you select this menu item a dialog box will appear, where you can select the charting styles. The picture below shows the dialog box with the different charting styles, one can choose from.

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Alternatively you can position the mouse pointer on an empty space of the price chart and double click the left mouse button. A dialog box will appear in which you can change the charting style by clicking the drop down box.

Wave Tree Select the View menu and choose Wave Tree. This command will allow you to toggle the display of the WAVE TREE.

Wave Inspector Select the View menu and choose Wave Inspector. This command will allow you to toggle the display of the WAVE INSPECTOR.

Summary Inspector Select the View menu and choose Summary Inspector to display a summary of trading signals for all time frames.

Alert Inspector Select the View menu and choose Alert Inspector to display the latest activated signals for all time frames.

Scan Inspector Select the View menu and choose Scan Inspector to display the SCAN INSPECTOR dialog box The SCAN INSPECTOR facilitates searching for specific investment or trading opportunities that comply with the criteria you have specified. So if you are looking for stocks to buy or sell, just specify the conditions and ELWAVE will find it for you. dialogue box will pop up in which you can specify the list of items to research and which conditions to use. Alteratively you can press CTRL-S simultaneously.

THE SCAN INSPECTOR

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Simulation Inspector Select the View menu and choose Simulation Inspector to display the SIMULATION INSPECTOR dialog box.

Pressing the Start new simulation dialog box will display the following dialog box in which you have to insert the record number from where you will start the simulation.

To determine the record number first you need to look in the regular chart, using the hairline, for the record number.

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If you have filled out the record number, click OK and the chart will be truncated in order not to show the future data which you are about to simulate. Also the SIMULATION INSPECTOR dialog box will remain visible, where you can instruct the software to buy or sell and in what quantities by pressing the BUY or SELL button in the dialog box. The same way you can log your trades in real time. Simulating your trading strategies is a very powerful way of gaining trading experience in the shortest time possible.

Panes Select the View menu and choose Panes. This command will allow you to select which indicator panes will be displayed in the active chart. Also, it allows you to remove the panes from the screen or redisplay them later on. If you select this menu

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option you will see a list of panes, which are available for the active window. The panes are listed in the order in which they appear top-down in the active chart window. By selecting or deselecting the particular pane you can toggle its display. The size of the pane can be adjusted by grabbing the separation border of the pane and dragging it to its new size.

4. Insert NOTE: to display or remove volume you can select the View menu, choose pane and select or deselect Volume.

The Insert menu can be used to add several indicators, etc., which you would like to have displayed in your chart, for example the volume indicators and the Fibonacci ratios. Indicators can be added either in a new pane or in the price chart. With some indicators, it is useful to display them in the price chart, for example moving averages. Since a lot of objects will be included in the price chart already, it is recommended that the majority of the indicators be displayed in separate panes. In each pane you can insert several indicators under the tabs on top of the indicator pane.

New Indicator Pane Select the Insert menu and choose the menu item New Indicator Pane.

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This will show the MANAGE INDICATORS dialog box, to select and insert the indicator of your choice in a new pane above the price chart. Theoretically you can add as many indicator panes as you like. On top of each pane you will notice several tabs, which are empty initially. Each time you click on one of these tabs, another indicator, if inserted already, will be displayed. This view can contain just one or several indicators. A dialog box will appear with the available indicators on the left side and the displayed indicators at the right. Here you can add and remove indicators, as well as change their properties.

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Tip: if you like, you can add more then one indicator in the same pane. You could add a different indicator under each tab. By just clicking with your mouse on the tab of your choice, you can instantly access the indicator you would like to display.

You can use the ADD(>>) button to add to the indicator pane. At first no indicators will be selected, so you have to select the desired indicator from the left list box by clicking on it with the left mouse button. Then click the ADD button and the indicator will appear in the list box. Now click the OK button to return to the chart, where the indicator will be displayed. If you change your mind and want to remove the indicator, then click on the REMOVE button before pressing OK. To change the properties of an indicator, like for example the color and the indicator specific variables, press the PROPERTIES button. If you don’t want to include new indicators at all, press the CANCEL button and you will return to the price chart without any modifications. This only works when you have not yet selected an indicator. To add an indicator to an empty TAB of an indicator pane, click on the TAB and click the right mouse button. An Indicator menu item will appear, select it and the same dialog box as displayed above will appear. Now you can add another indicator in the same pane. By clicking on the TABS you can switch indicators quickly. Remove indicator

To remove an indicator select the REMOVE button in the indicator dialog box. A dialog box will appear with the available indicators on the left side and the selected indicators at the right. Select the indicator you would like to remove from the list box on the right and press the REMOVE button with your mouse. Now this indicator will be removed. Press OK to leave this dialog box. Properties

Select the indicator you would like to change from the list box on the right and press the PROPERTIES button with your mouse. Another dialog box will show up.

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Alternatively you can change the indicator properties by double clicking with your left mouse button on the indicator line.

You can change the properties of an indicator as indicated by the Tabs in the dialog box. Parameters

To change the parameters of an indicator click on the Parameters Tab. Now you can change the “time periods” and the data field on which the indicator is based. For example if you prefer a 10-day RSI instead of the standard 14-day, change the time period from 14 to 10. Appearance.

By clicking on this tab you can change the appearance of the indicator. To change the line thickness of an indicator press the drop down arrow at the right of “LINE WEIGHT”. Here you can select your preference with the mouse. To change the color, press the CHANGE button. In the following dialog box you would click on the color you prefer, which will then appear in the COLOR/SOLID box and press the OK button.

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New Indicator in Price Chart Select the Insert menu and choose the menu item New Indicator in Price Chart. The MANAGE INDICATORS dialog box will then appear as already explained in the previous section New Indicator Pane. This dialog box will allow you to insert the indicator of your choice in the price chart.

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You can for example add Bollinger Bands, Keltner channels, Moving averages and a Parabolic indicator. Consult other technical analysis books if you need an explanation of these indicators. Managing Indicator panes If you want to change the indicator panes already in use, position your mouse pointer on the particular pane and click the right mouse button. A dialog box will show up, which looks the same as when you add a new indicator pane to the chart. Here you can add and remove indicators as well as change the properties of the indicator. For more information look under the section explaining New Indicator Pane from the Insert menu.

Fibonacci Pane This will only work on manual wave counts! The automatic analysis first has to be converted to a manual wave count, see Analyse menu, in order to select wave labels and display Fibonaccis. Select the Insert menu and choose the menu item Fibonacci Pane. This command will insert a pane with Fibonacci price relationships. First you will have to select any wave label of the wave degree for which you would like to see the Fibonacci ratios. The wave degree you have selected will appear in the first column. In the following columns the Fibonacci ratios of the next lower degree will be listed. Underneath each ratio you will find a temperature indicator, which displays the temperature of the Fibonacci ratio. The better the ratio, the more red and expanded the thermometer will be.

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Volume Pane Select the Insert menu and choose the menu item Volume Pane. This command will insert the volume in a separate pane underneath the price display of the active chart.

5. Analyse The Analyse menu allows you to analyze the chart in different ways, to convert automatic analysis to manual wave labels and to choose from different analysis layouts.

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Analyse entire chart Use Analyse from the main menu if you would like ELWAVE to generate a wave count and forecast automatically. Select the Analyse menu and choose Analyse entire chart in order to generate an analysis from scratch. For further explanation see the Advanced topics of this manual. Please note that analysis options are set by default to its best settings, nevertheless changes can be made by selecting Options menu.

Analyse selected wave (1 level) Choose Analyse from the main menu and Analyse selected wave (1 level) if you would like ELWAVE to sub analyze a selected wave as selected in the WAVE TREE .iThis will add one

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wave degree extra. To display the Wave Tree select from the Analyse menu either Typical layout or Expert layout. For expert users only.

Analyse selected wave (2 levels) Choose Analyse from the main menu and Analyse selected wave (2 levels) if you would like ELWAVE to sub analyze a selected wave as selected in the WAVE TREE .iThis will add TWO wave degree extra in one go and will ofcourse be more restrictive. For expert users only.

Update analysis Use this option to reanalyse selectively instead of analysing the whole chart. ELWAVE will know exactly which section of the chart needs to be reanalysed, which will save precious time. If an undefined wave count is returned, you need to reanalyze the chart entirely. Since an Analyse entire chart is more precise, it is recommended that a full analysis will be performed in order to produce more reliable results.

Check Wave Count To check a manually made wave count which you have labeled yourself, select the Analyse menu and choose Check Wave Count. This command can be used to build the WAVE TREE, displaying specific information on patterns, rules and guidelines all at once. This is a useful tool to inspect your wave count quickly and in an orderly manner or to navigate through the chart, since the WAVE TREE will zoom in on a specific wave degree, thus providing an alternative Zoom in function. Wave counts will get checked on specific Elliott rules and guidelines, of which different sets are available. The CLASSIC RULES and guidelines definition will analyse the wave count according to very strict definitions of patterns as required by the Elliott Wave Principle and will signal a false internal structure as well. 82 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

The MODERN RULES and guidelines definition adopts a more pragmatic approach and includes newly discovered patterns as well, taking into account the fact that markets do not always conform to textbook examples. (See also Chapter named Check Wave Count) The guidelines are helpful in assessing the probability of a count. The more guidelines that have been satisfied, the better the wave count. You can check the guidelines with the WAVE INSPECTOR.

Convert to Wave count This option enables you to convert your preferred Elliott count, as made by the automatic engine of ELWAVE, to a wave count so you can save it as a scenario file for later use. First select your preferred wave analysis on every wave degree using the WAVE TREE by clicking on the WAVE button with the right mouse or just accept ELWAVE’s first alternative. Please note that you can click on every WAVE button of the patterns in patterns to select your alternative. For expert users only.

Clear Analysis Selecting this option will clear the automatic analysis completely.

Start batch processor This menu option will start the batch processor program, which enables you to analyse multiple charts while you are otherwise engaged. Select scenario files to load and analyse. Basically this is the same batch processor as used by the Scan Inspector.

Save Custom layout This menu option will save your preferred layout.

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Custom layout This menu option will display the preferred layout, which you have previously designed and saved.

Simple layout This is a predefined layout that does not show most of the experts’ information.

Typical layout This is a predefined layout that shows more information and more specifically it shows the WAVE TREE which can be used to navigate the patterns.

Expert layout This is a predefined layout that shows all the information an expert would require.

6. Options Choose Options from the main menu if you wish to change the default preferences of ELWAVE.

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Analysis… In order to adjust the analysis setup, choose from the main menu Options and select Analysis … The Analysis options dialog box will pop up where you can alter the preferences for automatic analysis.

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Look for complex patterns By default this option is not checked. It is a very strict setting, only to be used by experts. Because of its strictness and analysis depth, it will produce different results. Extra wave degrees By inputting 1,2 or 3 extra wave degrees, the software will analyze the last unfinished waves in more detail, resulting in extra time frames and more detailed information in the SUMMARY INSPECTOR. Of course adding extra time frames will increase the analysis time. Indicate reversal on > 50% retrace (Modern rules) Normally this box is checked in order to use the Modern rules for analysis. The Modern rules will signal retracements of 50%

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in a wave 2 on every wave degree, which is very interesting trading information. If this box is not checked, the CLASSIC rules will be used which adheres to very strict Elliott Wave interpretation, while the MODERN allows for newly found patterns and contains the latest research. Analyze last xxxx records Herewith you can force ELWAVE to analyse a fixed number of bars instead of always using the complete data file. If the data file grows, after some time ELWAVE theoretically could come up with larger wave degrees in its results, just because the data file is larger. Also, for system testing purposes it is advised to use the same number of bars. Show analyzing Switch this on or off, by default ELWAVE shows how it searches for Elliott Wave patterns. Switching it off will save some time, when analysing. Show confirmation dialog box Start a second session of ELWAVE for collection of realtime data in order to watch the markets continuously while another session of ELWAVE updates its analysis.

After completion of an analysis ELWAVE shows a dialog box in which you have to press the OK button to continue. Normally you will not want to click OK every time the analysis has been updated, therefore it is advised to uncheck this box. Show ALERT INSPECTOR when… By default this is switched on. When critical levels are broken because of price fluctuations, the software will give appropriate signals automatically and if necessary update the previous automatic analysis. For expert users only. Check Signals Check this box if you require ELWAVE to update the analysis in real time automatically.

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Automatic Analysis update By default this option is switched on, causing ELWAVE to automatically start a new analysis if critical levels are broken. You will not be able to watch price fluctuations if this analysis update is in progress. Limit to once every … Depending on the speed of your computer, it will take some time to update an analysis. Reanalysing could take from around 20 seconds to perhaps 10 minutes or even more on slower computers. If you instruct the software to update the analysis too often, it will receive signals before the previous update has been completed. Thus you will not have a chance to operate the software because it will be busy all the time. Automatic Analysis on blank chart Check this box and ELWAVE will automatically analyze a blank chart that has been loaded. Revert to old 6.2 interface Press this button to activate the analysis interface used before version 7.0 and higher. Please note that this will disable the calibration and always will display wave degree Supercycle first in the SUMMARY INSPECTOR no matter how small the waves are.

Target Zones Choose Target Zones… to change the settings, which determine how combined Fibonacci price and time targets will be displayed in the chart. By default the option “include all alternative wave counts” is activated. This will calculate the Fibonacci relationships on all validated wave counts instead of just one count. See the Target Clusters chapter for more explanation.

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Wave Inspector For expert users only. Choose Wave Inspector… to change the information that will be shown when the WAVE INSPECTOR has been activated. A dialog box will pop up as shown below.

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Here you can toggle the listed options to display the information you wish to see in the WAVE INSPECTOR window. After a while, or if you are an experienced Elliott Wave analyst, you probably would like to see only the rules and guidelines which have been violated. To accomplish this deselect all check boxes and all other information will not been shown. If you switch the “show pattern in chart” on, not only the PATTERN, but also the SWING FILTER and TARGET BARS will be pictured in the chart.

Snap wave labels to extremes By default this switch is on making sure that the wave label you insert in the chart is attached to the top or low automatically. If you like to put it at a specific spot precisely, disable this setting by selecting this option.

Export Summary sgnals Herewith you can export the signals of the Summary inspector to a file that can be imported in Excel. For expert users only.

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7. Price data This menu makesit possible to do all sort of things with regard to price data, such as saving them in a separate file, editing price data, truncating at the beginning and/or the end of the data file and so on.

Save price data… You can save your price data either in Ascii format or in Metastock format. At the bottom of the SAVE dialog box you will find the field SAVE AS TYPE, where you can select the format. Fill out a name as you like and press the SAVE button. First time you save your data ELWAVE will ask for a location where to save it. Next time it will save immediately.

Change price data location… Change the location where you save your price data. Selct another folder or drive as you like.

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Export price data location… Basically the same as the Save price data menu item, but here ELWAVE will allways pop up a dialog box asking for the file name and location of the file to be saved.

Truncate price data… Use this option, to start simulations of the chart under inspection. Truncate the price data at the point where you would like to investigate how the analysis, would look if future data were unknown to ELWAVE. Move your mouse pointer over the chart to the price bar where you would like to truncate the data, and read from the status bar the index number. Insert the index number in the TRUNCATE PRICE DATA dialog box. You can truncate price data at the beginning and/or at the end of the chart as you like. Therefore any section of the chart can be selected and analysed.

Next have ELWAVE analyse the chart entirely and use CTRL-1 (from the numerical keypad, make sure that NUMLOCK is on)to CTRL-9 keys to add data bit by bit. If you use CTRL-1 only 1 bar or tick will be added, using CTRL-2 will add 2 bars, CTRL-3 adds four bars and so on. The software will show you exactly at what cross points it will signal a positive or negative indication and when it decides to update the analysis.

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Show truncated price data If this option is checked, truncated price data will show grayed out in the chart. Select this menu item again to hide truncated data.

Compress price data This menu option allows you to compress your price data to any compression you like. For example, a huge tick file can be dramatically reduced by compressing it to a 1 minute price data file. Select the time frame in the COMPRESSION field and click OK.

Correct bad ticks Bad ticks will be automatically corrected in intra day charts, provided a real time feed has been enabled. It will only work on tick files, not on compressed bars, like 1 minute bars, containing a price range. If you load an existing file you could

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have the whole file corrected by selecting this menu option. Make sure the settings in the elwave70.ini file of ELWAVE are correct, see the special section on real-time data feed. The elwavexx.ini file can be found in the Windows directory.

Edit price data Incorrect price data can be edited when necessary using this option. Please remember to save the price data, because the next time you request the symbol from your data vendor, the same errors, that just have been corrected, will be retrieved again.

You can either INSERT, APPEND or DELETE a row, see the buttons at the bottom of the EDIT PRICE DATA dialog box. Click with your left mouse button on one of the fields in a row to edit the contents of the field. When complete press the ENTER key to confirm the change.

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Perform stock split Using this option you can adjust an ASCII or Metastock files and save the new data. Export of other file types is not supported so these data should be adjusted using the data vendors’ software. This option has been added to help with the conversion of price data to the EURO or to split extremely large files which are too large to load in Excel.

7. Screen Tip: a screen can also be used to display the same security several times, where each chart shows more (wave degree) detail of the latest market action. By designing such a screen you will never miss the big picture, which facilitates recognizing wave patterns within wave patterns.

You can use the Screen menu to load and save screens. Saving a screen means that you save the entire layout of the screen containing all the loaded charts, in other words, a screen saves a specific set of scenarios in one screen file.

Before you save a screen you must have saved your scenario(s) in a file. If this has not been done yet, ELWAVE will first come up with a SAVE SCENARIO dialog box prompting you to save the scenario. Immediately thereafter the SAVE SCREEN dialog box will appear. In theory you can load and display as many charts as you want, but this only works properly on a high-resolution screen. For this purpose it is recommended to use a high resolution, for example 1024 x 768, preferably using at least a 17 inch monitor. For example, you may wish to compare four securities at the same time. Place a chart in every corner of 95 Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email: [email protected]

the screen (or select Tile vertical from the Window menu) and save the layout in a screen file. Next time you start the program you will probably like to compare the same four markets. By loading the screen file you will get the same set of charts immediately.

Open Select the Screen menu and choose Open. This command can be used to open previously saved screens. A dialog box will appear in which you specify a screen file by typing its name, or choosing the screen of choice from the list box. Then click the OPEN button to confirm. If the screen is not listed, browse to the correct directory.

Save Select the Screen menu and choose Save. Choosing the Save command will save the screen instantly. This way you can save your screens quick without renaming them. If you haven’t saved the screen before, a dialog box will appear in which you have to specify a screen name (a maximum of 8 characters) or clicking the screen of your choice from the list box. If the screen is not listed, browse to the right directory. Make sure you give the screen an easily recognizable name. Then click the SAVE button to confirm. If the screen already exists you will be asked whether to replace it. Click OK if you agree and CANCEL to return without saving.

Save as Select the Screen menu and choose Save as. The Save as command is used to save the current screen file for the first time or to save it using a different name. This is useful in order to create different screens. In this way it is easy to create numerous screens as required for the same security or multiple securities.

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Close Select the Screen menu and choose Close. Use this command to close the active screen file. If you didn’t save the changes made to the screen, the program will ask you if you want to do so now. Choose YES if you want to save the changes using the same name. Choose CANCEL if you change your mind.

Recent Screens Select the Screen menu and choose one of the Recent files. At the bottom of the Screen menu you will find a list of the last screens which were loaded. For your convenience ELWAVE will remember the last four screen files. This way you have quick access to the screens you probably use most. Click on one of the listed screens or press the number in front of the file.

8. Window Select the Window menu and choose the chart window, which is to be activated as the current window. Automatically this will appear in the foreground. This is a standard Windows function and very convenient for fast switching when multiple price charts have been loaded. Furthermore you can choose to Cascade or Tile the Price chart windows, which will display all windows in a predefined manner.

9. Help Here you can search for help on specific topics, or you can go through the Quick Tutorial to get started. Choose from the Help menu the menu item Contents to get help, choose About... to see information about ELWAVE and the registration of the copy you are working with. In addition you will find your Serial number in the left lower corner of the information box which is needed to calculate a new license key or to upgrade the software.

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Choose Enter new license key to see which modules are enabled and to insert a new license key. This is important to know for upgrading the software to extra modules or new releases. The new license key which Prognosis normally will send over the internet, can be inserted here and will activate the new software. This option can also be used to input a Release code. Keep CTRL key pressed when selecting this menu item.

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INDEX 3 negative ...................................... 49 3 positive” list ............................... 49 6.2 interface ................................... 89 About ............................................. 98 Add(>>) button .............................. 77 adjust Y-axis .................................. 34 Advanced Topics.......................... 20 Analyse .......................................... 81 Analyse entire chart ................. 24, 82 Analyse selected wave ............. 82, 83 Analysis Batch processor............... 47 Analysis options ............................ 86 Analyze last xxxx records............ 88 Appearance indicator ..................... 78 ASCII ............................................ 55 ASCII date format ....................... 56 ASCII Date Format........................ 56 ASCII files..................................... 55 AUTOMATIC ANALYSIS......... 10 Automatic Analysis blank chart..... 89 Automatic Analysis on open chart. 17 Automatic Analysis update............ 89 Automatic Scenario management .. 17 BASIC ........................................... 10 batch processor .............................. 84 Bollinger Bands ............................. 80 Calibration ..................................... 14 Candlestick ................................... 32 Change price data location....... 92, 93 change the properties objects......... 32 change the wave degree ................. 67 Channels ........................................ 37 Chart .............................................. 50 chart objects................................... 36

chart window..................................32 charting style ..................................33 Charting style .................................71 Charting styles................................32 Check signals .................................88 Check Wave Count ........................83 Classic ............................................83 Clear Analysis ................................84 Close scenario ................................63 Close screen ...................................98 Color ..............................................33 Complex patterns ...........................87 Component .....................................33 compression ..................................23 Compression...................................35 Conditions ......................................48 confirmation dialog box .................88 connect to your data provider.........22 Convert to wave count ...................37 Convert to Wave count ..................84 Copy Chart .....................................67 Copyright .........................................1 Correct bad ticks ............................94 critical price levels .........................43 CSI .................................................59 Custom layout ................................85 DDE server.....................................52 Degree Down .................................67 Degree Up ......................................67 Delete .......................................66, 68 Detail level of wave degrees ..........36 directory .........................................55 Disclaimer ........................................1 display Alert Inspector ...................72 display Summary Inspector............72 display Wave Inspector..................72 display Wave Tree .........................71 Dockable toolbars.........................12

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Drag and drop.............................. 12 drop the trend line.......................... 37 EASI .............................................. 29 Edit................................................. 66 Edit price data ................................ 95 Elliott HL Line ............................. 33 Elliott OHLC Line ....................... 32 ELWAVE program button .............. 21 Enter new license key .................... 99 eSignal........................................... 52 eSignal datafeed............................. 14 Exit................................................. 66 expert advisor English....................................... 27 EXPERT ADVISOR........ 11, 14, 26 Expert layout.................................. 85 Export ASCII................................. 65 Export Metastock........................... 65 Export Summary signals................ 91 Extra wave degrees ........................ 87 Fibonacci Pane............................... 80 File name. ...................................... 64 Files of Type, scenario................... 62 format of your ASCII..................... 56 From real-time data feed................ 53 FutureSource.................................. 59 Fxtrek............................................ 58 Gann Fann...................................... 39 Getting Started ............................... 20 Grabbing objects............................ 12 Graph type ..................................... 33 Hairline .......................................... 70 Hardware requirements.................. 12 Help ............................................... 98 Indicator Pane ................................ 75 INDICATORS.............................. 21

Insert ..............................................75 Installation........................................9 Interface .........................................11 Introduction......................................8 Keltner channels.............................80 Keyword.........................................59 KeyWord Wall$treet ......................19 Limit to once every ........................89 linear scaling ..................................70 load the chart..................................22 Look in. .........................................62 Managing Indicator panes..............80 MetaStock 8.0 ................................15 Metastock data ...............................57 Minimum requirements ..................12 Modern...........................................84 Modern rules ..................................87 Moving averages ............................80 New Chart ......................................51 New in version 7 ............................14 New Indicator in Price Chart .........79 OHLC Bar ....................................32 Omega Globalserver ....................60 Open...............................................61 Open Screen ...................................97 Operating system............................9 Options...........................................85 Panes ..............................................74 Parabolic ........................................80 PARAMETERS INDICATOR ................78 Perform stock split .........................96 Price data........................................92 Print................................................65 Print Summary Inspector................65 properties........................................66

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Properties ....................................... 68 Properties indicator........................ 77 Quick start...................................... 21 Quick Symbol ................................ 16 Quote Monitor ............................... 15 Quote window................................ 61 Quote.com................................ 15, 58 Recent Scenarios............................ 66 Recent Screens............................... 98 Recommended ............................... 13 Registration...................................... 1 Release code .................................. 99 Remove indicator........................... 77 remove pane................................... 68 Rescaling of panes ......................... 36 resize or move the trend line.......... 36 Right mouse button ..................... 12 Save all scenarios........................... 65 Save as scenario....................... 63, 65 Save as screen ................................ 97 Save as Type, scenario................... 64 Save Custom layout ....................... 84 Save price data............................... 92 Save scenario ................................. 63 Save Screen.................................... 97 Scaling ........................................... 34 Scan Inspector.......................... 44, 72 scan list .......................................... 45 Scan list.......................................... 47 SCAN NOW!................................. 49 SCANNING............................ 11, 44 Scanning for trading setups ........... 48 Scanning Standard and Professional ................................................... 15 scenario file.................................... 50 Screen ............................................ 96 Screens........................................... 15 scroll bar detail level...................... 71

Scrolling.........................................32 Semi-log .........................................70 Show Alert Inspector when..........88 Show analyzing ..............................88 Show truncated price data ..............94 Simple layout .................................85 Simulation ......................................42 Simulation inspector ......................42 Simulation Inspector ......................72 Size.................................................33 small square selection boxes ..........36 Snap wave labels to extremes ........91 sort..................................................49 sound ..............................................40 Speedlines ......................................38 Spirals ............................................39 Summary Inspector ........................26 TARGET CLUSTERS.................11 Target Zone ....................................25 Target Zones ..................................89 Targets............................................70 TC2000 ..........................................59 Techtools........................................59 template..........................................23 Templates .......................................15 TenforeQuoteSpeed .......................17 Time Ruler .....................................41 TRADING SIGNALS ..................10 Trend lines .....................................36 Trigger lines ...................................40 Truncate price data.........................93 Truncate Price data.........................42 Typical layout ................................85 Typing quick symbol IBM,5,b......................................16 typing the symbol...........................16 Update analysis ..............................83 update the analysis .........................43 upgrade the software ......................99

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Using the Menu ............................. 50 Y-axis.............................................34 View............................................... 68 Volume Pane.................................. 81 Wave Inspector options ................. 90 Window ......................................... 98

Zoom in ..........................................34 Zoom In..........................................69 Zoom out........................................34 Zoom Out .......................................70 Zoom Reset ..............................34, 70 Zooming .........................................34

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PROGNOSIS SOFTWARE DEVELOPMENT LICENSE AGREEMENT 1. Parties.

Agreement between Prognosis Software Development (Owner) and Customer. 2. License.

Owner grants to Customer, and Customer accepts, a non- exclusive license to use the programs and the optional materials listed on Exhibit A and additional programs and optional material which Customer orders under this Agreement. Customer acknowledges this product (ELWAVE) will be licensed to other individuals simultaneously by the Owner. 3. Registration

Customer has to register his copy of ELWAVE within 3 months in order to keep on using the product. On registering the Customer will receive an update or a password, which enables the Customer to continue to use the software. The software will work with one computer only, since ELWAVE will refuse to work on different hard- and software configurations. The Customer has received a unique copy, which contains the name and other data of the Customer. ELWAVE will generate a unique access key, which the user has to fill in on the Registration Form in order to receive the aforementioned password. 4. Charges. (a) Amount and Payment.

See list price of Prognosis Development. On delivery of this program payment conditions will be specified on invoice. (b) Taxes.

Customer will pay all state and local sales taxes when levied, on the Programs and Optional Material, or on their use. Any such taxes payable by Owner will be billed to and paid by the Customer. 5. Use Specifications.

Separate License Requirements. This license is granted for use of Program or Optional Materials on a single computer at one time. A separate license is required for each computer if the Program or Optional Material will be used on more than one computer simultaneously. 6. Basic Materials.

Any basic materials, in machine readable or printed form, and software diskettes provided by Owner for or with any Programs are governed by the terms of the license granted under the Agreement for such Program.

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Neither Prognosis Software Development, nor its employees or owners will assume any responsibility for downtime loss or damages resulting from corrupted hardware or any other disability of the product. 7. Delivery.

Owner's Programs will be shipped within fifteen days after Owner has received payment for the product 8. Risk of Loss.

Programs or Optional Materials damaged or lost in shipment to Customer will be replaced by Owner at no cost to Customer. Programs or Optional Material damaged or lost while in Customer's possession will be replaced by Owner at a reasonable replacement cost. 9. Programming Service. (a) Software Licensed "As Is".

Owner licenses all of its programs and materials "as is". Owner does not warrant the operation of the programs to be uninterrupted or error-free. For 90 days from the date of purchase, Owner will use its best efforts to correct any program operation errors upon proper notification. All conditions that caused a suspected defect or error to materialize must be fully documented and reproducible by Owner. The sole obligations in the event of a defect, at Owner's option, is to provide programming and technical support as necessary to correct the defect. (b) Additional Charges.

Owner may charge Customer for all additional costs and charges resulting from additional work in connection with programming services required due to Customer's requests for modifications of Programs or Customer's use of programs which are not the latest available release of the program. The Owner is not obligated to make ANY modification of the product. Under no circumstances is the Customer or his agent permitted to modify the program or materials. 10. Copying of Programs, Manuals, and Optional Materials.

Copying of any and all material provided under this agreement is strictly prohibited except as set forth in this agreement. All materials have been copyrighted by the owner. Violation of the provision will result in infringement of owner's copyright, breach of this agreement, and may subject customer to damages resulting from his violation of the provision. The results of the software are for Customers personal use only. Any commercial use or publishing of the outcome of the analysis generated by ELWAVE is prohibited, unless there is a written permission from the Owner. In addition all analysis results must clearly mark Owner as the source. (a) Printed Form.

Customer may not copy all or any part of any Program or Optional Materials provided in printed from. Customer may obtain additional copies from Owner at the charges then in effect.

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(b) machine-readable Form.

Customer may copy all or any part of Programs or Optional Materials provided in form only for archival purposes. (c) Ownership.

All originals and all copies, whether whole or partial, of all Programs or Optional Material are owned by the Owner. (d) Record Keeping.

Customer will maintain records of the number and location of all copies it makes of Programs or Optional Materials. 11. Software protection (a) Modification.

Customer or his agent may not modify Programs and Optional Materials that are in machine readable form for its own use or the use of others. Customer or his agent is prohibited from disassembling, decompiling. or reverse engineering the programs. Any attempt to modify or decompile the programs will automatically void any and all warranties, express or implied, and will be deemed a breach of the Agreement, subjecting this agreement to immediate termination and return of programs and materials to Owner. (b) Protecting Access.

Customer will not make available any Program or Optional Material to any person, other than its employees and Owner's representatives and employees, without Owner's prior written consent. (c) Customer's Supervisory Duties.

Customer is solely responsible for supervision of its use of the Programs and Optional materials, Including: 1. Assuring proper program installation, machine configuration, operating methods, and audit controls; 2. Establishing adequate backup plans to diagnose defects in Programs, in the event of a malfunction; and 3. Implementing adequate procedures to satisfy its requirements for security, accuracy of input and output, and restart and recovery in the event of a program malfunction. 4. Employee Responsibilities Customer will take all necessary and appropriate action with respect to its employees, and all other persons it grants access to Programs of Optional Materials, to assure compliance with its obligations under this Agreement regarding use, copying, alteration, protection, and security of Programs and Optional Materials.

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12.Copyright Notice.

Customer will reproduce and include Owner's copyright notice on any copy of Programs or Optional Materials This book and the accompanying software are copyrighted and are therefore protected by the Copyright Laws of the Netherlands and copyright provisions of various international treaties. All rights are reserved. The effect of such laws and treaties is that you may not, without a license from Prognosis Software Development copy or distribute the book or the software. 13. Patent and Copyright Actions and Indemnification. (a) Right to alter or Discontinue.

If any Program or Optional materials are, or, on Owners opinion, are likely to be, the subject of a copyright or patent infringement claim, Owner may 1. Obtain the right to continue using the Program or Optional Materials, or 2. Replace or alter them to make them non infringing. If, in Owner's opinion, neither of these alternatives is reasonable available, Owner may discontinue the license for the Program or Optional Materials on prior written notice to Customer. (b) Limitation of Liability.

Owner has no liability for patent or copy right infringement claims based on modification of the program by the customer. In any event, Owner's liability is limited to the value of the product price paid under the agreement. The provisions in the Paragraph 12 state the entire liability of Owner regarding patent or copyright infringement. 14. Warranty.

The only warranty or guarantee made is that warranty as stated in Paragraph 8 (a) of this agreement. Prognosis Software Development warrants the enclosed diskettes and documentation to be free from defects in materials for a period of 60 days from the date of purchase. The warranty stated above is in lieu of all other warranties, express or implied, Owner specifically disclaims all other warranties, express or implied, including but not limited to implied warranties of merchantability and fitness for a particular purpose. In no other event shall owner be liable for loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages.

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15. Limitation of Liability. (a) Amount.

Owner's liability for damages with respect to this Agreement and the license provided (including any liability for patent infringement or liability for copyright infringement), will not exceed the charges paid by Customer for the Program or Optional Materials which are the subject of any claim. (b) Type.

Owner in no event well be liable. (i) For losses, lost profits, or for other special damages or (ii) For any claim against Customer by any third party other than a claim for patent or copyright infringement. (c) Limitation Period.

No action arising under this Agreement may be brought by either party more than two years after the cause of action accrued, except for an action for nonpayment of charges which my be brought within ten years after the date of the last payment. 16. Modification of Agreement. (a) Owner's Right to Modify.

Owner may modify the terms of this agreement by 30 days prior written notice to Customer (b) Customer's Right to Terminate.

If the Owner modifies the Agreement, Customer may terminate this Agreement or discontinue any license provided under it on fifteen days prior written notice to Owner. Absent such termination, Owner's modification of this Agreement will be effective on the date provided in subparagraph (a). 17. Termination of License.

Owner may terminate this Agreement or discontinue any license on thirty days prior written notice to Customer (a) if Customer fails to comply with any of the terms of this Agreement or (b) as provided in Paragraph 12. Notice of discontinuance of a Program license acts as a notice of discontinuance of any license for optional material granted in connection with the Program licenses. If all licenses are discontinued, this Agreement shall not terminate unless Owner specifically provides notice of termination. 18. Destruction on Discontinuance.

Customer will provide Owner, within ten days after discontinuance of any license under this Agreement, with a certification that the original and all copies, in any form, of the applicable Program and Optional Materials have been destroyed.

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19. Other (a) Sole Agreement

This Agreement, in conjunction with the Disclosure and Disclaimer attached hereto is the complete and sole agreement between the parties, and supersedes all other communications between the parties. This agreement also takes precedence over the terms of any Customer order for any licenses. (b) Saving Clause.

If any provision of this Agreement is invalid under any applicable statute or rule of law, such provision is deemed omitted and the balance of this Agreement shall remain binding on the parties. (c) Customer's Remedies.

Customer's remedies, as provided in this Agreement are exclusive. (d) Governing Law and Consent to Jurisdiction.

This Agreement is governed and construed in accordance with the laws of the Netherlands. Any or all proceedings relating to the subject matter hereof shall be maintained in the courts of the Hague in the Country of The Netherlands, which courts shall have exclusive jurisdiction for such purpose . In the event Owner must seek legal proceedings to enforce a breach of the terms of this Agreement by Customer, Customer shall be liable for all costs and attorney's fees. Should Customer bring any action in arbitration or reparations, the site of such hearing shall be in the Hague. (e) Binding upon Successors.

This agreement shall be binding upon, and inure to the benefit of, the parties hereto and their representatives, successors, and assigns. 20. General Disclaimer

The Customer acknowledges and agrees that neither Prognosis Software Development, nor its employees, nor the owners or their respective heirs or successors, make any representation or guarantee regarding how this product may perform in the future, nor will this product guarantee profits for the Customer. The Customer is advised to test the software thoroughly before relying upon it. The user accepts to assume the entire risk of using the software and printed material. In no event shall Owner be responsible for any special, consequential, actual or other damages, regardless of type, and any loss or lost profit resulting from the use of this software. Customer acknowledges that success depends upon Customer’s ability to utilize the information, software and techniques described in this product. In the event that any liability is alleged or awarded in any forum notwithstanding the above, such liability shall be limited to the price of the product paid under this agreement. Customers’ payment, returning of the registration card and signature shall be evidence of Customer's acceptance of all of this License agreement.

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