HRJ / TOOLS & LEARNING
Wave structure and trade planning
An introduction to HRJ’s wave-structure and supply-and-demand workflow, with ABC vocabulary, invalidation and testable risk plans.
Start with a scenario
HRJ combines wave interpretation with supply-and-demand zones to organize a trade idea. Describe the structure, identify the price area, define what would invalidate the idea, and then test risk and exits. A convincing chart annotation is not evidence of a profitable strategy.
What do 1–5 and A–B–C mean?
Numbered waves are commonly used to describe a directional five-wave structure. Letters can describe a correction. These labels help express a scenario; drawing five swings or three letters does not validate a count or determine the next move. Corrections can be more complex than a simple ABC.
Basic labels and formal NEoWave
NEoWave is Glenn Neely’s extension of Elliott Wave analysis. The founder describes an ordered analytical process with specific chart-data and confirmation requirements. This page introduces vocabulary used in HRJ discussions; it is not a complete NEoWave rulebook. Read the founder’s explanation for the methodology’s own description. HRJ’s introduction does not imply official affiliation.
Turn the idea into a testable plan
- Record the instrument, exchange, timeframe and analysis time.
- Mark the swings supporting the proposed count and keep an alternative when structure is unclear.
- Identify a supply or demand area as a place to observe, rather than a guaranteed turning point.
- Write a specific entry condition and reasoned invalidation before choosing targets.
- Choose position size and risk; compare full and partial exits.
- Record the actual outcome separately from an assumed simulation.
Imagine a hypothetical market falling from 120 to 100, then rebounding toward 110. A trader might investigate an A-down/B-rebound scenario and observe a supply area at 109–112. This alone is not enough to validate a wave count. The plan still needs confirmation, invalidation and an objective. If confirmation never occurs, the result can simply be no trade.
Measure the plan
Review average net R, fees, drawdown and losing runs across recorded outcomes. Compare an alternative count with the same risk rules. A simulation remains a set of assumptions until supported by observations. Use the Performance Lab guide to understand how its calculations treat those assumptions.
Explore more
Market Radar guide · Bubble Maps guide · Performance Lab guide