My Thoughts on Elliot Wave Business Laid Out
Occasionally, someone will ask me my thoughts on Elliott Wave hypothesis. I am always cut open when I give my answer because while I feel it’s a great methodology, it requires an education that not many people are arrange to commit to. Whenever something requires more than just plug and play, many traders tend to get disenchanted, and look for something easier. I know, because I have been looking at Elliott Wave for over 8 years, and still have a very hard time still picking out wave counts with any degree of accuracy. There are some traders that learn it as easily as tying their shoes. Man, they piss me off! Still, I like to use Elliott Wave theory when Im doing my nightly prep work.
Elliott Wave is not form fit onto every single stock as some bundled software would want you to believe. Elliott Wave is not an indicator or a moving average, but an actual methodology on how to approach the stock market trends on any and all time frames. This is an important point to understand before you make your decision to learn Elliott Wave theory.
Ralph Nelson Elliott was by anyone’s interpretation, a genius. Elliott held various executive positions throughout his 25 years in the accounting field. In 1924, the U.S, State department made him chief accountant of Nicaragua. After illness set in and he became bedridden, Elliott advised 75 years worth of stock charts and formed the principles for Elliott Wave theory in 1934, publishing his book The Wave Principle at the end of August, 1938. From there, he gained fame and notoriety as an amazingly accurate market forecaster until his death.
Elliott Wave theory divides the market into predictable patterns, known as waves. Impulsive or motive stages of the trend are divided into 5 waves while corrective stages are divided by 3 waves. The waves subdivide, and there are alternatives to the waves as well. While it may sound complicated, there is a routine to learn and follow to make things easier. While I am far from an expert on Elliott Wave theory, I am light years ahead of where I was just a few years ago, as a result of of the writing of one individual.
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