Elliott Wave Training

Are you looking to learn the Elliott Wave principle? Or maybe you already have some experience and want to find the ways to improve your skills better.

Click on this post for details:

http://wavepatterntraders.blogspot.com/2012/04/elliott-wave-training.html



Showing posts with label CEWA. Show all posts
Showing posts with label CEWA. Show all posts

Sunday, July 22, 2012

Faux Elliott Wave Counting



I sometimes wonder, did anyone actually read

Elliott Wave Principle Key to Market Behavior by A.J. Frost and Robert R. Prechter

Elliott Wave is not that difficult, yet when i see obvious 3 waves being counted as a 5 wave advance, from alleged Elliott Wave experts then clearly it will cause the public to disrespect other fellow Elliotticians work as we all get labelled the same.

And if further just gives the ammo to the non believers that Elliott Wave is just some goof with some labels and numbers and does not really have any purpose.

I cant argue for other Elliotticians but only argue for myself, you will never see me count waves that are blatantly abusing the rules and guidelines.

If its so obvious, then its obvious how you must count it regardless of the larger picture, the waves themselves will fit in somewhere, but there are rules and guidelines.

I have a qualification, i have studied the rules and guidelines and read countless books and articles from the person that bought Elliott wave to the forefront.

Whilst i may not agree with Roberts wave counts, i will say that i am truly grateful for him allowing me to share in Ralph Elliott's work.

There is a marked difference between 3 waves and 5 waves, i understand that sometimes there is a bit of confusion with patterns like triple ZZ (triple ZZ ie WXYZ) but for this post i am going to refer to the move from the June 2012 lows into the June 2012 highs and show you why its not a 5 wave move.

I have seen on more than 3 occassions from different sources it being counted as a 5 wave advance

The pattern is ongoing but that part of over, its a clear 3 wave move.

There can be no question about it.

An ABC is a 3 wave move, generally consider to have 2 legs of the same length with the B wave around the 50% of the length of the move.

A 5 wave impulse, has a clear 5 wave structure that should be clear to anyone, even the most basic of traders, and generally consider that wave 3 is the longest wave of the 5 waves

So if you cant tell the difference between a 5 wave move and a 3 wave move by simply looking, then either you cant count, or you are forcing wave labels to your bias its as simple as that.

Lets review the move

Its a clear 3 wave move, if you cant spot that, you have no business counting or even attempting to use Elliott Wave, professional or not, if you have a hard time spotting basic patterns then you are going to run into trouble.

Notice how the move stays sideways, and we dont see a deep correction, that's a characteristic of a B wave, if you have studied Elliott Wave for a while you get to understand the nuances and characteristics of each wave and what to expect.

One of the main guidelines of a ABC is that wave C generally will met the length of A, as you can see on this occasion it never even reached the C = A target.

It has an obvious 3 wave look, the correction is around the 50% of the whole move, and the 2 upside legs are approx the same length.

That is a classic 3 wave move, NO ifs or buts, its not a 5 wave move.

If its a 5 wave move, then its being counted wrong, and its being counted wrong for a reason.

That reason is due to a bias, failure to accept what you see against what you want to see (forced counting)

If you cant distinguish between the basic 5 wave pattern and 3 wave pattern, you are going to run into issues.

If you are a professional reading this and you count waves like that, i question your integrity, as its clear that you are NOT following the rules that are laid out in Frost and Prechters book.

Or did you even read the book?

PS - I am aware of Ian Copseys work, but this post is not referencing his work, as he uses his own adapted version of Elliott's work

Sunday, June 24, 2012

Elliott Wave Accreditation CEWA

The Elliott Wave industry is predominately dominated by just a few select groups, although there is no real governing body as far as i know.

But there is a standard of expertise that can be attained if a trader wishes, although i will always maintain, the "real" education comes from "life experiences" watching waves grow and develop.

Getting to feel and breath waves in action, having spends countless hours seeing patterns develop, it is IMO the only sure way to gather experience.

The only other alternative is you want to try and fast track is to get yourself under the wings of an experienced Elliottician that can answer your questions and fine tune those points you may have.

But i am pleased to inform readers, that i now hold and have passed level 1 Certified Elliott Wave Analyst (CEWA)

Details: http://www.elliottwave.com/CEWA/Certified-Elliott-Wave-Analyst.aspx?code=OCOMI

So it goes a little way to getting my skills recognized in this industry