Trading with the Elliott Wave Principle

[BrianS333]

I have read the Frost and Prechter book on Elliott Waves and have also visited elliottwave.com to learn as much as I can about it. It seems that many people swear by this system as means of forcasting markets. Reading the old version of the book and then the updated version online, I noticed that they added new terms and new wave sequences.

It seems to me that because of the complixity of their system one can easily use their immagination to apply the wave system to any graph. It also seems conveniant that irregular patturns can simply be explained by: zigzags, multiple strings of a b c's, elongations etc.

Can anyone tell me of their experience with Elliot Waves? Is it useful as far as short term technical trading? Am I the only one who thinks that there are too many rules and exceptions to make it an effective trading strategy?

Thanks

 

[Cyclon]

You are not alone

Hi BrianS333,

There is a quote that goes loosely, "if you get 12 wavers in a room you will end up with 13 wave interpretations and considerable bloodletting".

Its a problem. I still use elliott wave excluseively, however. If done correctly it is the ONLY way to know what the market is going to do.

I have discovered that there is a key generated by the wave itself and that led to so many other things including a new rule that eliminates all the 'alternate' counts and contorted descriptions like you mentioned.

I started with all this in the stock market but when I tried the key on currencies it didn't work. Later I found out there was a factor that if you multiply it on all your technicals in stocks they will work in exactly the same way for forex. [Note: curious exception is my usage of an 89 setting of Williams %R - that does not work with the factor so it should be kept the same for stocks and forex]. The factor is directly related to the key. And the key is always there and is generated by the wave itself. It doesn't get any better than that - to put your analysis right IN the wave.

It also led to a trading technique that even the non-elliott trader can employ but is based IN the wave because of the key.

I don't know how long the bad rep will last for elliott wave analysis and especially in forex where there are some real differences in application. I don't really care of course. Makes me money.

Cheers,
Cyclon

 

[rpaco]

Thus spake the guy with one red eye. (Who is on the run from Buck Rogers)

But I have to agree with both Cylon and Brian (as in "Life of"?) because Cyclon undoubtedly has the ability to look at a chart and apply the wave numbers "correctly" whereas when I do it I am invariable wrong. There is an hour long video on Socionomics which I think came originally from EWI (the Elliott Wave web site) which may convince you. (If you want it and can't find it email me. its 60MB in size though)

Now on this FPA site the focus is on news trading via the info from Felix and his excellent interpretation of the news calendar. The news of course come in waves and affects the market at the right time to form the waves in the SP as it reacts to the news. (That should raise a few eyebrows!)

Cylon has studied the waves for so long now that he must be very rich, I am currently learning his system which is being fine tuned for idiots such as myself. When I have it under control I will put a review in the the reviews section. (I wouldn't hold your breath waiting, I am a slow learner.)

May the wave be with you.
42

 

[BrianS333]

Thank you for the response Cyclon and rpaco. Cyclon, pardon the newb question but what do you mean by "keys"?

 

[rpaco]

42

He means he found the answer to Life, The Universe, AND Everything; which according to whether we favour Douglas Adams, or Proff Stephen Hawkins and importantly, his contemporaries; is either "42" OR to do with string theory, 11 dimensions, doughnuts and flat plane multiple universes (maybe with mobius on the planes, hold the mayo!)

Right back on earth! He means that he has discovered the factor which is contained within and generated by, the waveform. It's a secret that enables him to assess the position within and state of, the waveform. From his knowledge he has conceived a system which allows you to bypass the "Not knowing which wave we are on." bit, but to know accurately when a pivot is going to happen. (Once you have learnt and applied the method and tools using MT4)

I 'int sayin' 'ne more cuz I've paid and yo' baint. You will 'av to buy his system to find out how it works. As I said previously, I am still learning the system and the instructions are being tweaked as we read this.

If you want more goto SuperTradeSystem.com - Home of the STAR Forex Trading System

 

[BrianS333]

I think I will look into Elliott Waves a little closer before I journey to find the secret to the universe.

Thanks again for the help guys.

 

[ras1398]

Rpaco..i would love to take a peek at the video you mentioned...im a noob here and couldnt find the PM or email feature....

can you post a link or ...?

Thx

 

[Cyclon]

The New Upgrade is done

Thanks for all your help rpaco - hope you like it.
Starting from the end to get to the beginning - figures.

Making crooked paths staight.

Flattening out the market - this rocks

Looks like we got a little elliott corner here.

Anyway...

Now maybe I'll get a chance to check out your socionomics vid. Thx

 

[rpaco]

42

Hi ras
Well two things, firstly it isn't a peek, it's an hour long video which may make you think rather hard about how the world is run. Things happen with timing in waves why? I mention this because I watched a repeat of the Conspiracies series last night, it was the one about the Illuminati. (more recently/currently the Builderburger group) It's a huge file to download about 60MB size. The video is mainly presented by Bob Prechter it does not mention the Illumuinati, Builderberger or anything of the kind so don't worry about crank theories. But you may start to wonder.

Secondly I just checked the original link on the Elliott wave site and it no longer functions, so I have put a copy on my own website which you can access direct but with full and complete acknowledgment of the original source and all copyright rights etc to the creators and owners. It's a wmv file and the quality is not brilliant.
http://www.rpaco.f9.co.uk/Sociothingwave.html

I will take it off air again next week because I am a bit unsure about the legality of passing it on although it was a free download originally.

You should be a member of EWI (Elliott Wave International: Expert Market Forecasting using the Elliott Wave Principle) its free and you will get loads of info from it.

 

[rpaco]

One Red eye

Hi Cyclon
You seem to have gone all automatic , I have just got the update (By your command) and will start reading it tomorrow.

If anyone else needs a moron to read their instructions please let me know.
ATB

Will be taking the vid down soon. See my comment to Ras.