Anyone else think Elliot Wave is a bunch of hooey?

Discussion in 'Technical Analysis' started by swtrader, May 22, 2004.

  1. I just picked up some xec at 38.77. I really don't like that entry point so I only purchased half of my position.
     
    #201     Aug 25, 2006
  2. My comments on Elliot Waves are:
    - the whole theory is self-fulfilling. It can't be wrong since any market movement can fit into this theory.

    - Probably Elliot Waves Theory is most accurate after the market played out its moves, not before!

    - However it doesn't mean it is completely useless. This theory could give you some useful ideas and trading concepts, be it explicit or implicit.

    - Take the essentials, then throw all the rest (eg complex wave counting, wave patterns and descriptions, what the author to teach you to use Elliot Waves to predict and trade the market)
     
    #202     Aug 25, 2006
  3. Cheese

    Cheese

    And of course great popularity can attend any proposition (eg EW) that is a theory to explain everything or almost everything (in this case, EW is everything to do with explaining market price behavior short term and historically).

    There is just the small matter that EW theory does not have any precise and certain applicability.
    :)
     
    #203     Aug 26, 2006
  4. My comments on your comments :)

    - the EW describes the market, the predictive power of EW is created by the anticipations of the observer. most need glasses!

    - again, most need glasses

    - EW covers the entire context of every market. No other TI can.

    - take the teachings of Elliott alone, all the rest is pure speculation. Then improve upon his teachings and you have the EW Principle, not the EW theory.

    Oh, and the book by that title is a nisnomer.
     
    #204     Aug 26, 2006
  5. Correct the theory does not, but the Principle is sound and very applicable, when EW equation is solved.
     
    #205     Aug 26, 2006
  6. I don't know of anything in trading that has "precise and certain" applicability.

    EW is a tool. The problem most people have with EW is they pick a stock first, and then they try to find out where it stands at a particular point in time from an EW point of view. It is far better to scan for obvious EW waves and pick your best stocks from your scan.
     
    #206     Aug 26, 2006
  7. The stock needs to meet several requirements before waves can be properly identified, such as; popularity, volume, does it generally move with the market, and is the historical pattern bullish. If it fails on any of these, the waves may appear for a little while but eventually the patterns will be meaningless.

    Let's not forget. Stocks can drop 10%+ on one news event.
     
    #207     Aug 26, 2006
  8. Grail,

    My guy follows Ford, has a similar pattern to Sirius.
    Any ideas on this one.
    It has already broken out of its downtrend.
     
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    #208     Aug 30, 2006
  9. Well this is why I HATE elliott waves unless I am absolutely sure I am trading off of an ABC correction.

    We really don't know if a simple wave 2 has just completed, or whether we are in an ABC correction with the b wave just completing today. If this is the case the stock will correct to 7.06 to 7.18. If your chart is correct we should make it to 9.58-10.00 on this leg.

    In otherwords, I have no clue on this one. My gut tells me you are correct, but my gut has a smaller brain than my penis.
     
    #209     Aug 30, 2006
  10. One can never be absolutely sure of anything :)
    Just have to work with the probabilities.
    Which suggest the wave will continue.
    But if it doesn't, it provides a really good buying opportunity at the low marked by the 2.
    Like your honesty about the brain LOL
     
    #210     Aug 30, 2006