Elliott Waves and Bollinger bands

Indicators required: Bollinger bands (period 25, shift 2)

Time frame: could be any, suggested 1 hour, 4 hour or daily.

The concept lies in easy spotting & counting Impulsive and Corrective Elliott waves
with the help of Bollinger bands channel.

Rules for an Uptrend:

1. As long as the price continuously touches the Upper Bollinger band, the Impulsive wave (1, 3 or 5) is in progress.

2. If price retraces down approaching lower Bollinger band - the corrective wave is in progress.

3. Once the price touches the lower Bollinger band - the correction will most likely be over and a new wave should follow. 

Rules for a Downtrend:

1. As long as the price continuously touches the Lower Bollinger band, the Impulsive wave (1, 3 or 5) is in progress.

2. If price retraces up approaching the upper band - the corrective wave is in progress.

3. Once the price touches the upper band - the corrective wave will most likely be over and a new wave should follow.

Chart tip: To make the middle Bollinger band line invisible in MT4, draw additional bands (period 22, shift 3) and match their color to your chart background color. 

Summary: Bollinger bands indicator can help with Elliott Wave count: to find impulsive waves, as well as search for patterns in during corrective waves, however, it's not recommended to build trading solely around the Bollinger bands, as you'll get many losing trades.

Use the method to count Elliott waves, and then apply additional analysis to make trading decisions.