Hi, I’m Pat
and I’m an Elliott Wave Guy. If you don’t know about Elliott Wave theory I recommend
that you go to the library and read the first four chapters of Elliott
Wave Principle by Frost and Prechter. It should just take you a few hours. These
four chapters summarize the theory in its entirety. Do not research Elliott
Wave on the Internet. Folks are always making stuff up on the Internet and
calling it Elliott Wave when it is not. IMO, the tutorials over at EWI aren't even that good. The book has it all, is the fastest way to learn it, and is the defining reference on the theory.
this do for you? If you have done just a few months of screen time these four
simple chapters will Blow Your Mind. You will never look at markets the same
way again. I have done many thousands of hours of research back testing indicators and relationships within markets and Elliott Wave has become the foundation for all of my analysis. I have never met anyone who understood Elliott Wave Theory and
Markets and concluded that EW is nonsense.
What do we
know about markets?
(1) Markets move in waves.
(2) These waves move in trends and
(3) These waves have structure.
(4) We can define with rigid rules 5
(5) The Market is a fractal; waves at
lower degrees in the fractal combine to make larger waves at higher degrees in
Enough with the pitch. This is
what Elliott Wave is telling us in The Big Picture:
500 just dipped below the lower trendline coming up from the Mar. 9 bottom (on
both Linear and Semi-Log scales). IF Primary Wave 3 has begun, we are in a
position compatible to the October 2007 top. However, the number three is a big
deal in Elliott Wave because it is almost always the most forceful wave in a
motive series. This means the upcoming decline (if it has started) as a three of Primary Degree will be more
forceful (greater price change / faster) then the decline from October 2007 to
March 2009. This is why the Elliott Wave Folk are getting so excited.
to Tim and best regards to my fellow Slopers!