In the 1930s, R.N. Elliott discovered that the stock market moves in recurring patterns that he called waves.
He formulated the Wave Principle based on these
wave patterns called Elliott waves. Humans behave in a manner, when given
a stimulus, in similar and probabilistically predictable fashion. This behavior
of acting in similar ways makes us no different than the other creations of
nature. Freely traded markets are the only sources that reflect the collective
behavior of humans and the current social mood. Highly liquid markets cancel
out the random events and what is left is the social mood of the mass and that indicates
what we can expect in the future. We believe that any freely traded markets
like Equities, Forex, Commodities move in the form of repeatable
wave patterns that exhibit fractal nature at various degrees. This behavior was
first observed by Ralph Nelson Elliott in 1930s. This study of waves
is now famously known as Elliott Wave.
Ideal Elliott wave chart:
How to begin applying
Elliott Wave principle?
The Elliott Wave
Principle works by identifying patterns in market prices. So, in other words,
we start by analyzing waves on a chart. Patterns consist of Impulsive as well
as Corrective waves. If we can identify repeating patterns in prices, and
figure out where we are in those repeating patterns today, we can predict where
prices are headed in future.
Elliott Wave: A
tool to forecast major turning point’s successfully!
Market does not move
randomly. It always moves in patterns and that to not vague patterns but
recognizable patterns with precession. Patterns such as Head & Shoulders,
Triangle, Wedge, Flag, etc...works well to predict the market.
If you are a new
trader or investor, learning the Elliott Wave Principle is an important step on
your path to trading success.
What is difference between
Elliott wave and Neo wave?
In Elliott wave there
are only 3 rules to define an impulse pattern. However by using Elliott Wave rules
for impulsive structure there is couple of probable scenarios always running.
Neo wave is an advanced part of Elliott wave build up by Glenn Neely
and has many rules to define a simple impulse pattern. This tends to
reduce the subjectivity and provide objectively the most probable scenario that
can occur. Also time factor plays an important role in Neo wave - like 2
stage confirmation that involves Time and Price together to get a confirmation
that the trend has changed.
Advanced Elliott wave
in combination with basic technical analysis forms a very powerful forecasting
tool that can help any trader or investor not only with entry and exit levels
but also to time the market. Forecasting future is always probabilistic and
these concepts help us to come out with highest probable scenario right from short
term basis to long term forecasts!
Now distance is not a
constraint. If you cannot travel and would like to learn Elliott wave at your
own pace and convenience you can subscribe to our Educational video series CDs
that explains right from important techniques to be used in addition to Elliott
wave and has many practical charts and examples on different degree of time.
The difference between a novice trader and an expert trader is only taking an
extra step and learning from someone who has seen the cycles of market. Here is
the opportunity to Learn & Trade and also get access to 1 week of research
reports absolutely FREE to enhance your learning!
Event: 2 days
Training workshop on Neo wave
Ashish Kyal, CMT –
Director of Waves Strategy Advisors will be conducting a 2 days training
workshop in Mumbai. For more details visit
Or Contact Us at email@example.com or
on +91 22 28831358 / +91 9920422202