I have 200 charts I work on weekly. I am continually refining and adjusting my list. When the Elliot Wave is nearing the correction point - I begin to tune in for news, check filings, etc.
Each week I make a list of my anticipated companies nearing the end of the Elliot correction and watch for a bullish candle to begin the new wave. If a stock has been dropping drastically on the "C" wave, I may wait for 2 day confirmation, because sometimes the drop continues after a one-day bullish candle.
A bullish Candle is usually my signal.
Sometimes, though, like DNN today, I was going to watch but received an email alert from the company (before hours) that their earnings statement was coming out today and it was very good. So I figured it would gap up on pre-market sells and I watched to see if it was going to continue to go up or down, so I sold immediately.
Be careful, most people get burned by penny stocks.
