Posts Tagged ‘Elliott Wave Principle’
Which Method Can Traders Use to Confirm an Elliott Wave Count?
Jeffrey Kennedy has developed a theory that guides his analysis
When you are watching a pattern develop on a chart, how can you be sure that your wave count is correct? The Elliott Wave Principle offers rules and guidelines that you can use to add confidence to your wave count.
Elliott Wave International’s Senior Analyst Jeffrey Kennedy spent years designing his own technique to improve his accuracy. He came up with the Jeffrey Kennedy Channeling Technique, which he uses to confirm his wave counts. The following excerpt from Jeffrey’s Trader’s Classroom lessons, a regular feature of his Futures Junctures Service, offers an overview of his method. Read the rest of this entry »
Read About the Elliott Wave Principle in R.N. Elliott’s Own Words on his Birthday
July 28 would have been Ralph N. Elliott’s 140th birthday, so it’s a fitting time to post an excerpt from his essay, “The Basis of the Wave Principle.” There’s nothing like reading for yourself what the discoverer of the Wave Principle wrote about how it works. This essay is taken from the book, R.N. Elliott’s Masterworks. It’s the definitive collection that Robert Prechter collected and published in 1994.
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The Basis of the Wave Principle
by R. N. Elliott
First published on October 1, 1940
Civilization rests upon change. This change is cyclical in origin and characteristics. A rhythmic series of extreme changes constitutes a cycle. When a cycle has been completed, another cycle is started. The rhythm of the new cycle will be the same as that of the previous cycle, although the extent and duration may vary. The cycle progresses in accordance with the natural law of movement. Read the rest of this entry »
Efficient Market Hypothesis: R.I.P.
Of all the belief systems of Wall Street, few can claim the devoted following of the Efficient Market Hypothesis, the idea that stock prices adhere to the same laws of supply-and-demand that govern retail products. Once coined the theoretical “Parthenon” of economics, this notion has consistently endured the test of time —– until now. Academics and advisors across the globe are currently exposing crack after crack in the “Efficient” model so deep as to bring the entire theory crashing to the ground.
“The EMH is not only dead,” writes a July 29, 2010 news source. “It’s really, most sincerely dead.” (Minyanville)
As to what caused the theory’s collapse — one recent business journal offers this insight: Read the rest of this entry »
Elliott Wave Tutorial
“Successful market timing depends upon learning the patterns of crowd behavior. By anticipating the crowd, you can avoid becoming a part of it.”
I pulled this quote directly from the opening paragraphs of the free Elliott Wave Online Tutorial. It’s critical to your understanding of how markets really work.
Now some might say, “What’s wrong with following the crowd? I’m just following the easy money, right?” The problem with this logic is that most investors follow the crowd (or herd) all the way up the mountain … then right off the cliff.
Look at today’s situation: How many people you know got out of the stock market before the October 2007 top? Heck, how many you know cut losses and cashed out even six months after the top?
If you’re like most people, your answer ranges from “zero” to “very few.”
Being a successful investor over the long-term means you must always strive to be part of that “very few.” Read the rest of this entry »