Which Method Can Traders Use to Confirm an Elliott Wave Count?
Jeffrey Kennedy has developed a theory that guides his analysis - March 8, 2012 By Elliott Wave International
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.
Everything You Ever Wanted to Know About the Elliott Wave Principle
Club EWI's free introductory tutorial on the Wave Principle is the key to unlocking the mystery of market behavior
March 31, 2011
By Elliott Wave International
Okay. There can be only two reasons why you are reading this article right now:
- You thought "Elliott wave" was a surfing term for a wicked breaker, dude.
-- OR --
- You're tired of fundamental analysis of financial markets leaving you behind the trend-moving curve, AND you're ready for an alternative.
If you answered the second choice, then you're in the right place. Fact is, you can probably count on all hands -- of a millipede -- the number of times the mainstream financial media has provided conflicting reports on how a certain news event "moves" a particular market. Case in point, the recent headlines below on the Dow Jones Industrial Average:
- March 31 at 8:44 AM: "US Stocks Edge Lower After Jobless Claims Data" (International Business Times)
- March 31 at 9:53 AM: "US Stocks Slightly Higher After Jobless Claims Data" (Wall Street Journal)
The Elliott Wave Principle resets the stage from an entirely different starting point. Wave analysis asserts that while certain news events can have a temporary, near-term effect on market prices, the larger trend is governed by one consistent force: social mood, or collective investor psychology.
This source of markets' trending power unfolds in calculable wave patterns visible on a market's price chart. Elliotticians know of 13 such patterns, each of which adheres to specific rules and guidelines. Ultimately, if you can identify one of these patterns, you can project what direction the pattern will move prices AND how far into that direction prices may go.
The best part is, Club EWI has recently re-released our most comprehensive Wave Principle tutorial ever, at no monetary cost. This 10-lesson course leaves no stone unturned and no question unanswered about the basic recognition of all Elliott patterns and their practical application in real-world markets.
In the end, the difference comes down to this simple reality: Before taking the Wave Principle tutorial, the price chart of a major financial market looked like this:
After taking the tutorial, that same chart comes into breathtaking being as the clearly labeled blue print to opportunity we see below:
Join the rapidly expanding Club EWI community today and get the complete, free Wave Principle Tutorial.
This article was syndicated by Elliott Wave International and was originally published under the headline Everything You Ever Wanted to Know About the Elliott Wave Principle, Free. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
Learn Elliott Wave Analysis
Understand the basics of the subject matter, break it down to its smallest parts -- and you've laid a good foundation for proper application of... well, anything, really. That's what we had in mind when we put together our free 10-lesson online Basic Elliott Wave Tutorial, based largely on Robert Prechter's classic "Elliott Wave Principle -- Key to Market Behavior."
The Elliott Wave Principle
The Elliott Wave Principle
In the 1930s, Ralph Nelson Elliott, a corporate accountant by profession, studied price movements in the financial markets and observed that certain patterns repeat themselves. He offered evidence of his discovery by making a number of accurate stock market forecasts.
