Was just wondering; a question for the wave experts out there What is behind the elliott wave's recurring themes, impulse and corrective waves? Is this question conceptually the same as asking why does gravity exist? Is it that the waves just ARE, like gravity just IS? Skeptics or fans/users, any thoughts? Would appreciate if this doesn't turn into a 'you use EW and hence are stupid' or ' my wave counts are right 100% of the time' waste of time. It would be great if we could just discuss the why behind the phenomenon.
Elliot Wave addresses the unpredictability of the markets by allowing a dupe to overlay an infinitely malleable price/time scheme on a chart. The dupe feels in control, despite his continued failures.
http://www.amazon.com/Mastering-Elliot-Wave-Presenting-Forecasting/dp/0930233441 if you are interested in wave theory, this is the final word. regards, surf
To the beginning student, the Theory's complexity, multiple pattern variations, "alternate count" possibilities and apparent subjetivity seem almost insurmountable and appear to nullify the Theory's validity. This is due to the extreme demand of specifics required of the Elliott Wave analyst. All general pattern categories, and each of its variations, requires different relationships, channeling, price behavior and technical characterists. This creates the illusion that the Theory is purely subjective and can be molded to fit anyone's opinion.
If you're interested in the MarketSurfer story, this is the final catchphrase: http://www.amazon.com/Wipe-Out-Chri...ef=sr_1_3/102-2571390-3036110?ie=UTF8&s=books There isn't one successful trader, manager that uses EW.
Paul Tudor Jones credits EW to a lot of his success in his Market Wizard interview. I also know someone who worked with Stevie Cohen and he told me that the man also used all manner of technical input, including EW. But regardless, once again, this thread wasn't intended to be a referendum on EW's usefulness or lack of it. To those that believe in it, the question is WHY would it work. (hint: saying that it represents market psychology isn't an answer)
Check this guy out. I have been reading his posts for a while. So far it has worked. He used to post here too. http://caldaroew.spaces.live.com/
Market Surfer I've since some of the contents of the book, and it looks like pseudo-science to me. None of that stuff is testable, so why believe it? Neely says that EW represents market psychology. Why? Because he says so? What evidence is there that EW does represent mass psychology? I started this thread to better understand WHY elliott wave is supposed to work. Neely doesn't have much of a rationale, other than stating an a priori conclusion.
The question is why wouldn't it work? It is based on some of the basic presumptions about the nature of the markets, the natural phenomenon, the natural law etc etc.. which also includes us humans. I guess, like in everything else.. It is all about figuring out when and how you are supposed to use it and executing on it. The same can be said in another way in that... a set of golf clubs will be worth more in the hands of Tiger Woods than say, in the hands of a basketball player.