Elliott Wave trading helps traders identify predictable market cycles. The Stocks Predator Elliott Wave scanner automates pattern recognition across 5,000+ stocks daily. Flagging Wave 4 pullbacks primed for a fifth wave move. Using Avnet Inc ($AVT) as a live example, the platform pinpoints an entry zone of $87–$88. A stop loss at $79.73–$79.76, and a risk-to-reward ratio of 1:1.6 into the fifth-wave target. Watch the Video with analysis below.
Most traders stare at charts for hours, hunting for setups that may never appear. Elliott Wave trading flips that equation. Rather than reacting to price, it gives you a framework for anticipating where price is likely to go next and when to get in.
The challenge? Manually tracking wave counts across thousands of stocks is close to impossible. That’s where the Stocks Predator Elliott Wave scanner changes everything. Built by veteran trader Paul Bratby, it scans more than 5,000 stocks every 24 hours. Automatically identifying those completing a Wave 4 pullback and positioning for a fifth-wave breakout. The result is a shortlist of high-probability setups, ready for your review each morning.
In this post, we walk through a real trade example using Avnet Inc ($AVT) to show exactly how the scanner works. How to validate the setup, and how to plan your entry, stop, and target with precision. Whether you’re new to Elliott Wave analysis or looking to systematize your approach, this breakdown will show you what a structured, repeatable trading process looks like in practice.
Watch the Live Walkthrough
See the full AVT trade analysis in action. Including the wave count, oscillator confirmation, EMA cloud check, and entry planning, in the video below:
What Is Elliott Wave Trading and Why Does It Work?
Developed by Ralph Nelson Elliott in the 1930s, the Elliott Wave principle is built on a simple but powerful idea: financial markets don’t move randomly. They follow repetitive cycles driven by collective investor psychology, optimism, greed, fear, and pessimism, playing out in recognizable wave patterns.
The core structure consists of five impulse waves followed by three corrective waves:
- Waves 1, 3, and 5 move in the direction of the primary trend (motive waves)
- Waves 2 and 4 are corrective pullbacks against the trend
- Waves A, B, C form the post-impulse correction
Wave 3 is typically the strongest and longest. Wave 5 is the final push, offering traders an opportunity to capture a high-probability move after the Wave 4 correction has run its course. That’s the trade Elliott Wave traders live for catching Wave 5 right as Wave 4 exhausts itself.
How Does the Stocks Predator Elliott Wave Scanner Work?
The Stocks Predator Elliott Wave scanner, included in the Premium subscription at StocksPredator.com, handles the heavy lifting of pattern recognition automatically. Here’s how the workflow unfolds:
Step 1: Automated daily scan
The scanner analyzes more than 5,000 stocks every 24 hours. Flagging those that have recently printed a Wave 4 signal. Filtering for signals within the last five days alone can narrow the list from 5,000+ stocks down to around 143 candidates.
Step 2: Apply smart filters
From there, additional filters sharpen the list further:
- Beta > 1 — focus on stocks with above-average volatility relative to the S&P 500
- Optionable stocks only — ensures adequate liquidity for options traders
These two filters alone can reduce the candidate list to a manageable 20–30 stocks. That’s your daily research universe.
Step 3: Multi-timeframe confirmation
Once a stock is flagged, switch to the weekly chart to check for major support and resistance zones. When the daily Wave 4 pullback aligns with a significant weekly support zone, confluence strengthens the setup considerably.
Identifying a Wave 4 Pullback — The AVT Trade Example
Avnet Inc ($AVT) is a textbook example of how the scanner surfaces a compelling Elliott Wave setup. After trading near a 52-week high of $139.06 in June 2025, AVT pulled back sharply, closing near $87.54 by early May 2026, a decline of roughly 37%.
That pullback places AVT squarely in Wave 4 territory. The Stocks Predator scanner flags this pattern, identifying an entry zone between $87 and $88. Right where Wave 4 appears to be completing and the setup for a fifth wave move begins to take shape.
This is precisely the kind of setup the scanner is built to find: a quality stock in a mature Wave 4 correction, approaching a potential reversal zone.
How to Measure a Wave 4 Pullback with the Elliott Wave Oscillator
A visual wave pattern is a good starting point, but it needs confirmation. That’s where the Elliott Wave Oscillator comes in.
The oscillator measures the relationship between the pullback depth during Wave 4 and the oscillator’s peak during Wave 3. The rule of thumb for a valid Wave 4 pullback: the oscillator’s pullback should register between 90% and 140% of its Wave 3 peak.
On AVT, the oscillator confirms this range is met. That’s the green light for Wave 4 validity, the pattern isn’t too shallow (which might signal Wave 3 is still in progress) and isn’t too deep (which could indicate a larger structural breakdown).
To measure this precisely in the Stocks Predator platform, apply a Fibonacci retracement tool directly on the oscillator itself. If the oscillator’s pullback lands between those 90–140% levels, you’ve got a structurally sound setup.
Using the False Breakout Stochastic to Confirm Trend Exhaustion
The False Breakout Stochastic is another built-in indicator that complements the oscillator confirmation. During a healthy bullish impulse, this indicator typically remains in overbought territory through Waves 1–3.
During Wave 4, selling pressure dominates and the stochastic drops into oversold territory. A bullish crossover from the oversold zone is a meaningful signal. It suggests selling pressure is exhausting itself and the stock may be ready to resume its upward momentum.
When all three conditions converge on AVT, price in the pullback zone, oscillator confirming valid Wave 4 depth and stochastic crossing over from oversold. You have a powerful trifecta of confirming signals pointing to a potential Wave 5 entry.
How Do EMA Clouds Support the AVT Setup?
The EMA Cloud Indicator, available in the Stocks Predator Premium plan, provides dynamic support and resistance visualization. An EMA cloud is formed by plotting two exponential moving averages and shading the area between them. During pullbacks, price often finds support at the cloud, acting as a dynamic floor.
For a conservative entry on AVT, the setup calls for price to be not only above a key daily pivot but also outside the 6/4 moving average high. This dual filter ensures the stock has shown clear upward momentum before an entry is committed. Thus,reducing the chance of catching a falling knife while still participating in the early stages of Wave 5.
What the Bias Depth Heat Map Shows on ABT
The BIAS Depth Heat Map is one of Stocks Predator’s scanning tools that filters stocks for directional bias strength. By assessing the depth of the current pullback relative to historical behavior, it helps confirm whether the current wave structure reflects a normal corrective phase or something more concerning.
On AVT, the Heat Map reinforces the Wave 4 thesis, the pullback depth aligns with typical corrective behavior rather than a structural trend reversal. This adds another layer of confidence to the setup.
What Is the Best Entry Strategy for an Elliott Wave Trade Setup?
Elliott Wave trading setups offer two entry approaches: aggressive and conservative. Each suits a different risk tolerance.
Aggressive entry: Enter within the $87–$88 zone as Wave 4 appears to bottom. Accepting more uncertainty in exchange for a better average price.
Conservative entry: Wait for the price to break above a defined daily resistance pivot and close outside the 6/4 moving average high. This confirmation-based approach filters out false starts and only triggers a position once upward momentum is confirmed. For AVT, this means waiting for a daily candle to close with conviction above that pivot level before entering.
The conservative approach may sacrifice a few points on the entry, but it dramatically reduces the risk of entering too early on a setup that isn’t ready.
Where Should You Set Your Stop Loss on This Trade?
Stop placement is non-negotiable in Elliott Wave trading. For the ABT setup, the stop loss sits at $79.73–$79.76, positioned just below the Wave 4 low of $80.16.
Why below Wave 4? If the price breaks and closes below that level, the wave count is invalidated. Wave 4 cannot overlap the price territory of Wave 1 in most standard Elliott Wave rules, so a break below the Wave 4 low signals the structure is broken and the thesis is wrong. A tight, well-defined stop like this keeps risk controlled and exits the trade quickly if the setup fails.
What Is the Risk-to-Reward Ratio on the AVT Elliott Wave Setup?
With an entry at $87–$88 and a stop at $79.73–$79.76, the risk per share is approximately $7.25–$8.27. The fifth-wave target, calculated using Fibonacci extensions of the prior wave structure within the Stocks Predator platform, projects a move that delivers a risk-to-reward ratio of 1:1.6.
A 1:1.6 ratio means for every dollar risked, the trade targets $1.60 in reward. While that may sound modest, it’s consistent and consistency beats home runs in the long run. The Stocks Predator platform’s trend-based Fibonacci extension tool makes this calculation visual and immediate. So there’s no guesswork on target placement.
What’s Included in the Stocks Predator Premium Subscription?
The Stocks Predator Premium plan is built for serious traders who want a complete, structured workflow. Here’s what’s included:
- Elliott Wave Scanner & Indicator — automated daily scan of 5,000+ stocks
- Harmonic Patterns Scanner & Indicator — identify additional high-probability pattern setups
- EMA Cloud Indicator — dynamic support/resistance visualization
- xBrat® Manager — trade management and position tracking
- Global Scanning — scan for xBratAlgo, Roller Coaster, and BIAS Depth Heat Map eligibility
- Confluence Meter — filter stocks with simultaneous buy/sell signals across all three xBrat® strategy alerts
- Dynamic Watchlists — nightly email alerts with fresh setups matching your criteria
- Comprehensive Trade Journal — integrated journaling with in-app screenshots for every setup
- Inner Circle Live Swing Trading Room — a live trading room valued at $79/month, included FREE
Right now, StocksPredator is offering 50% off Premium for life, plus a 7-day free trial. The Premium plan drops from $199/month to just $99.50/month and that discount locks in permanently. Check the links below to get started.
Start Trading Elliott Waves with More Confidence
Elliott Wave trading rewards patience and structure. The theory is powerful, but the process of scanning thousands of stocks, counting waves, measuring oscillators, and planning trades is where most traders run out of time, or discipline.
The AVT example shows exactly what that process looks like from scan to entry to stop to target, systematic, methodical, and grounded in well-tested technical principles.
Ready to find your next high-probability Elliott Wave setup? Visit StocksPredator.com and use the link below to claim your 7-day free trial and 50% lifetime discount on the Premium subscription.
