The Advanced Elliott Wave indicator will help you trade Elliott waves on the Prorealtime platform. It displays impulsive and corrective waves on your charts. You will identify the beginning of market corrections and the resumption of the uptrend. The indicator provides reliable buy signals with targets calculated from Fibonacci levels.

The user manual includes the following sections:

• Indicator Installation
• Launching the Indicator
• Indicator Configuration
• Creating an Alert System
• Backtesting a Strategy

Indicator Installation

Before installing the indicator, you must purchase a license or subscribe to the trial version. The indicator is available on the Prorealcode marketplace at this address:

https://market.prorealcode.com/product/advanced-elliott-wave-indicator

Installing the Advanced Elliott Wave indicator is quick and easy. Follow the standard installation procedure described on this page:

https://market.prorealcode.com/how-to-install-my-product-in-prorealtime

Launching the Indicator

After installing the license on your Prorealtime platform, the indicator will be available in the Indicators & Trading Systems window in the “ProRealCode MarketPlace” section.

To access the indicators window, click on the “Price” icon located in the price chart window, then on “Add Indicator…“:

To access the indicators window, click on the “Price” icon located in the price chart window, then on “Add Indicator…“:

To access the indicator, refer to the “ProRealCode MarketPlace” section or type the name “Advanced Elliott Wave” in the search bar. Double-click on the “Advanced Elliott Wave” indicator to display it in the price window:

Why does the price chart become flat after loading the indicator?

The indicator returns buy and sell signals. This allows you to use the indicator to create alerts and backtests. It returns 1 for buy signals and -1 for sell signals. These values ​​are displayed by default on the price chart. This automatically adjusts the chart size, making it flat.

To avoid having to readjust the price chart, follow these steps:

1. Double-click on the price chart
2. Open the indicator configuration window
3. Scroll to the bottom of the window
4. Uncheck the boxes in the “Line” column

The price chart will readjust; you won’t need to repeat this action. 😊

Indicator Configuration

The Advanced Elliott Wave indicator is fully configurable. It offers numerous options that enable you to tailor the indicator to your specific needs. You can choose the wave type, display Fibonacci levels, activate buy signals, apply filters, set price target levels, and change the display.

Accessing the Control Panel

To access the indicator’s control panel, click on the indicator tab at the top of the price chart window, then click “Configure“:

The control window will open and allow you to configure the indicator as desired:

Wave Type Selection

You can select the type of corrective waves the indicator will look for on the price chart. To do this, check the corresponding box(es):

Show Elliott Wave Cycles

You can display Elliott Wave cycles by checking the “Display Cycles” box. This option will indicate the start and end of corrective cycles on the price chart.

Adjusting Elliott Wave Detection

The indicator uses the Elliott Wave Oscillator (EWO) to detect waves. You can adjust Elliott Wave detection by smoothing the EWO oscillator with the “EWO Smoothing” option:

In this case, the wave recognition algorithm will be more efficient. However, applying smoothing delays the detection of the waves.

Signal Selection

The indicator detects four different buy signals. It detects bullish breakouts and retests of the levels corresponding to waves (5) and (B).

Here are the four signals recognized by the indicator:

You can display these buy signals on your charts by checking the corresponding box(es):

Signal Validation

You can enable validation of breakout and retest signals with the “Validated Signal” option. In this case, the indicator will display signals only if the candlestick following the signal closes above the broken price level.

Breakline Length

You can set the length of the break line. The indicator will detect breakouts and retests only along this line. Its length corresponds to the number of candles.

You can change this value with the “Breakline Length” option:

Volume Filter

You can filter breakout signals only if volumes accompany them. To do this, click the “with Volumes” option:

Divergence Filter

You can filter breakout signals only if there is a bullish divergence. To do this, click on the “with Divergence” option:

Price Target and Safety Stop

The indicator automatically calculates price targets and safety stop levels based on Fibonacci extensions.

• You can choose to display these levels by checking the “Take Profit” and “Stop-Loss” boxes.
• You can adjust these levels with the “TP Level” and “SL Level” parameters.

Displaying Fibonacci Levels

The indicator allows you to display Fibonacci retracements and extensions. You can choose the wave on which you want to display this information with the “Display Fibonacci on Wave” option:

Values ​​from 1 to 5 correspond to the first five impulsive waves, and values ​​from 6 to 8 correspond to the three corrective waves.

Fibonacci Extension Levels

You can choose the number of Fibonacci extension levels the indicator will display with the “Extension Levels” option:

Fibonacci Line Extensions

You can extend the display of Fibonacci lines with the “Fibonacci Extension” option:

Transparency Area Coloration

You can adjust the transparency of the Fibonacci level color areas with the “Transparency” option:

Elliott Wave Color

You can choose the color of the impulsive and corrective waves with the “Impulsive Wave Color” and “Corrective Wave Color” options:

Line Thickness

You can change the thickness of the wave lines and resistances with the “Line Thickness” option:

Font Size

You can adjust the font size of the text displayed by the indicator with the “Font Size” option:

Data Returned by the Indicator

The Advanced Elliott Wave indicator returns data that you can use to create alerts and backtest strategies.

Here is the data returned by the indicator, along with its descriptions:

Creating an Alert System

You can use the Advanced Elliott Wave indicator to create alerts on the Prorealtime platform. Here are the steps you will need to follow to create an alert:

1. Configure the Indicator

Before creating an alert, you must configure the Advanced Elliott Wave indicator. The Prorealtime platform will use the configuration you have chosen to send you alerts.

If you have defined lines with a length of fifty periods with signal validation and increasing volumes, the platform will only send alerts for this configuration.

In this example, I will create an alert that will be triggered if the price breaks upwards above the top of wave B.

2. Open the Alerts Window

To set up an alert, you must open the alerts window. To do this, right-click on the price chart and click “Create New Alert.” This will open the following window:

3. Select the Advanced Elliott Wave indicator

You must select the Advanced Elliott Wave indicator for the Prorealtime alert system to use the signals returned by this indicator:

4. Set the values

The Advanced Elliott Wave indicator returns 1 when there is a bullish breakout. If you want to create an alert on bullish breakouts, you must select the “equals” sign and enter a value of “1“:

5. Manage triggers

The trigger section allows you to choose the alert timeframe. In this example, the platform will send alerts once a day in the event of a bullish breakout:

6. Create the alert

After checking your alert settings, click the “Create Alert” button:

7. Monitoring Alerts

You can find your alerts by opening the alerts window via “View“, “Alert Status“, or with the shortcut “CTRL-A“:

Backtesting a Strategy

You can integrate the indicator into a backtest to test a configuration. To do this, you must use the “CALL” function:

myBreakout, myTargetLong, myStoplossLong, myFiboExt, myCycle, myW1, myW2, myW3, myW4, myW5, myWA, myWB, myWC = CALL "Advanced Elliott Wave"[0, 0, 0, 0, 0, 1, 0, 0, 0, 0, 0, 0, 0, 50, 0, 0, 1, 5, 1, 6, 0, 9, 50, 5, 14, 8, 3, 4](close)

Returned Data by the Indicator

The Advanced Elliott Wave indicator provides all the information you need to backtest a strategy or create a trading robot. Here is the data returned by the indicator, along with its descriptions:

Calling the indicator in a backtest

To call the indicator in a backtest, you must pass its configuration parameters to it. I’ve created a sample code to help you integrate the indicator into a strategy. The variable names are the same as those in the indicator.

The following code will call the Advanced Elliott Wave indicator. It will open long positions after the bullish breakout of wave (B) accompanied by volume and strength:

//--------------------------------------------------------//
// *** Advanced Elliott Wave Backtest  *** //
//--------------------------------------------------------//
// * Author: Vivien Schmitt
// * Website: https://artificall.com
// * Indicator: Advanced Elliott Wave
// * Indicapor Description: https://artificall.com/advanced-elliott-waves/
// * Marketplace:
// * Documentation:
// FR: https://artificall.com/docs/advanced-elliot-waves/documentation-advanced-elliot-waves-fr/
// EN: https://artificall.com/docs/advanced-elliot-waves/documentation-advanced-elliot-waves-en/
//--------------------------------------------------------//

DEFPARAM CUMULATEORDERS = False
DEFPARAM PRELOADBARS = 1000


//--------------------------------------------------------//
// *** POSITION SIZE *** //
//--------------------------------------------------------//
// Capital to invest
ONCE CapitalToInvest = 10000
// Minimum number of contracts
ONCE NumberOfContractsMin = 1
// Position Size
NumberOfContracts = MAX(ROUND(CapitalToInvest / Close, 2), NumberOfContractsMin)


//--------------------------------------------------------//
// *** SETTING BLOCK *** //
//--------------------------------------------------------//
// Corrective Waves Selector
ONCE isZigZag = 0
ONCE isRegularFlat = 0
ONCE isExpandedFlat = 0
ONCE isRunningFlat = 0
ONCE isTriangle = 0
ONCE isAllCorrectiveWaves = 1

// Elliott Wave Cycles
ONCE isDisplayCycle = 0

// Elliott Waves Oscillator Smoothing
ONCE EWOSmoothing = 0

// Signal Selector
ONCE isBreakupWave5 = 0
ONCE isRetestWave5 = 0
ONCE isBreakupWaveB = 1
ONCE isRetestWaveB = 0

// Breakout and Retest Validation
ONCE isValidatedSignal = 0

// Breakout and Retest Line Length
ONCE BreakupLineLength = 50

// Volume and Strength Filters
ONCE withVolumes = 1
ONCE withStrength = 1

// Take profit
ONCE TakeProfit = 1
ONCE TPLevel = 5

// Stop-loss
ONCE StopLoss = 1
ONCE SLLevel = 6

// Display Options
ONCE DisplayFibonacciOnWave = 0
ONCE FibonacciExtensionLevels = 0
ONCE FibonacciProlongation = 0
ONCE Transparency = 0
ONCE ImpulsiveWaveColors = 0
ONCE CorrectiveWaveColors = 0
ONCE LineThickness = 0
ONCE FontSize = 5


//--------------------------------------------------------//
// * INDICATOR CALLING * //
//--------------------------------------------------------//
myBreakout, myTargetLong, myStoplossLong, myFiboExt, myCycle, myW1, myW2, myW3, myW4, myW5, myWA, myWB, myWC = CALL "Advanced Elliott Wave"[isZigZag, isRegularFlat, isExpandedFlat, isRunningFlat, isTriangle, isAllCorrectiveWaves, isDisplayCycle, EWOSmoothing, isBreakupWave5, isRetestWave5, isBreakupWaveB, isRetestWaveB, isValidatedSignal, BreakupLineLength, withVolumes, withStrength, TakeProfit, TPLevel, StopLoss, SLLevel, DisplayFibonacciOnWave, FibonacciExtensionLevels, FibonacciProlongation, Transparency, ImpulsiveWaveColors, CorrectiveWaveColors, LineThickness, FontSize](close)


//--------------------------------------------------------//
// *** Buying Conditions *** //
//--------------------------------------------------------//
IF NOT LongOnMarket AND myBreakout THEN
  // Target price
  Set Target Price myTargetLong
  // Stop-Loss price
  Set Stop Price myStoplossLong
  // Buying order
  BUY NumberOfContracts CONTRACTS AT MARKET
ENDIF

Backtest Results

Here is the result of the previous backtest run on Amazon stock in the weekly timeframe: