Elliott Wave Theory

[rahi]

Hello Friends,

I read articles from different traders on Elliott Wave and that forced me also to write something as I am a follower of Elliott Wave Principles and also Advanced Get.

To my surprise, how can one say that something is bad. Just because he or she failed? Someone who make these indicators are not fool and they proved it.

About Elliott Wave : Elliott wave principles are based on the same principle as technical analysis. As per Elliott Wave, market repeat itself again and again and in a same similar 8 wave patter. 1st wave - Up, 2nd wave down, 3rd wave again up, 4th wave down, 5th wave up and that ends of a rally. 6th wave or 1st bearish wave down, 7th wave up and last 8 wave down and that complete downward cycle also. In total these 8th waves complete the entire cycle of Bullish and Bearish Market.

The problem is with Elliott is counting of waves. I read the best Elliott Waves analyser's column also, he also did mistakes few times, so being a novice analyst, we are suppose to do the mistakes.

What Advanced Get can do: Advanced get is the best software available for analysing Waves. I saw the article, Mr. Arun invested heavily in Advanced Get and than also he lost. Poor Fellow It's not a fault of Advanced Get, it must be the mistake of Arun. Softwares are not Holy Grail. One have to learn Software before using it. In Advanced Get's help section, they have clearely mentioned 2 techniques to invest based on Advanced Get.

Secondly, as per Elliott wave principles, 3rd wave is the longest and very powerful wave. So, it's very simple rule, when advanced get will give any scrip 2nd wave, than start ready for 3rd wave, once 2nd wave is over, do your own analysis, study some of the other indicators like preferably MACD, Stochastics and/or Moving Average Cross Overs.

I give you one example, just open the weekly chart of BSE. And you will be surprise to see that how beautifully Elliott Wave Analysis are there. Wave 1,2,3 & 4 is very clear. Now market is coming up, which is a clear mark of 5th and the last wave. I analyse this situation before 2 months and since than market is keep coming up. Look for the other principles of Elliott Wave.

As per Elliott Wave, in the 5th wave, usually one will not find blue chip scrip moving fast. Instead of Blue chip scrips, other stocks will move fast. Blue chips scrips will move in random. Even though market will be coming up, there will be an atmosphere of uncertainty. Just check it out urself what is going on presently in our stock market.

At last, I would like to adviced to my trader friends, to concentrate on the Art of Technical Analysis. Technical Analysis certainly helps. It helped others and it will help you too, you just have to learn the art of technical analysis and should know in-depth a good technical analysis software. That's it

Thanks
Rahi.

 

[Traderji]

Good write up rahi!

I guess every individual is different and what may work for one man could just not work for the other.

Why don't you post a chart of your analysis using a screen capture utility? I am sure all of us would appreciate it very much.

Also why don't you write a daily/weekly analysis of the markets here using the Elliott Wave Theory.

 

[Neal]

I have been closely following a Mr. Vivek Patil's (a self proclaimed guru of Elliott Wave Theory) column at ICICIdirect.com over many years.

He very convientently changes wave counts to fit into his analysis. One moment he labels a move as 4th wave and if the targets are not met it very convientently becomes a x wave. A 1-2-3 becomes and x-y-x. He has been doing this over the many years that I have read his column. If he himself is not sure, how can I trust myself to follow Elliott wave?

Would anyone care to comment?

 

[sh50]

There is one Mr Rohit Srivastav of Sherkhan too who follows Elliot waves. He is their chief analyst, I think. I second Traderji's suggestion- if charts can be displayed and explained here, nothing like it. Would be a great learning experience. Somebody demonstrated Advanced Get to me comprehensively. Buying to try and figure our whether or not it suits you is quite a costly proposition. Somebody else whom I met at the TA seminar also told me that wave counts on advanced GET were very deceptive. Who does one believe?

 

[Shahina]

Dear Traderji,

I also would like to post my chart analysis, however I am a new member and I am still hovering in and around the site

Please guide me how to upload chart file or shall I send you by post. In such a case, please give me your email id

Thanks
Rahi.

 

[Traderji]

To post attachments please read this instruction in the FAQ

 

[CreditViolet]

I still dont use Elliott Wave for trading even though I have spend my entire free time understanding them.But I would like to add that-there is no pattern that lies outside of elliott wave.If u want to understand the psychology of markets elliott wave is the way to go.Nothing else even comes close
Also u cant expect a software to think for u.U have to understand EL first and then use a software.Not the other way around.U have to spend years before u can predict using EL and not many people have that patience.
The disillusionment is because people think that the truth is out there ala XFiles
but i say the truth is in there lol

 

[yogiman90]

Does anyone know of any analyst giving weekly reports based on Fibonacci / EW ?

I think there is Vivek Patil but his reports are too short.

Also can anybody tell me how to plot Fibonacci retracement.

I am a value investor but want some support from technical analysis to time market. Knowing when to sell rather than when to buy

Thanks

 

[Traderji]

I am a value investor but want some support from technical analysis to time market. Knowing when to sell rather than when to buy

Thanks

For me the most practical way to know when to book profits (sell) is to have a trailing stoploss at a certain % below the current market price. Once I have a close below this stoploss I sell my long positions. Hope this helps you yogiman.

 

[amarnath]

Elliott Wave Theory


Elliott Wave might hold some academic interest, but in terms of a trading approach -- -- --

I agree with this statment