Elliot Wave get's a lot of bad rap as overly complicated and of
course Analysts like Prechter who are perma bears hurt its
reputation as a useful tool. However I like to use a very
simple form of Elliot Wave (no need to know all the crazy rules) to
help with my analysis and also see some nice trading opportunities,
an it's very easy to differentiate when a stock is in a true
downtrend, or simply having a bullish pullback in an uptrend.
I see your point about how you use Elliot Wave. But you
might want to address the problem I have with the theory:
namely that it seems to have consistent predictive value only
retroactively.
In your view, can one use Elliot Wave to make consistent
predictions about the future behavior of a stock? In other
words, do you think that it's possible to successfully trade a
stock in realtime using Elliot Wave? Even if it's "one piece
of the puzzle," for it to be a useful piece of the puzzle it should
be able to make consistent and verifiable predictions.
It might be interesting to paper trade a stock or etf using just
Elliot Wave information and see what kind of results ensue.
algyros - my EW video was not about using EW as a prediction
tool, it was about how to easily spot if a pullback on a strong
stock in an uptrend that is bullish consolidation via a glance of
the eye vs using all kind of complicated rules etc. As I
showed in the video, I didn't show how to predict where the
pullback would end or how long it would last, I used the 200 MA and
Fibs for that. Just the choppy over lapping moves are a very
easy thing to see that it's a bullish consolidation and look for a
buying opportunity.
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A Useful Elliot Wave Tutorial using AAPL as example
Posted by matt on 20th of Jul 2011 at 09:59 pm
Elliot Wave get's a lot of bad rap as overly complicated and of course Analysts like Prechter who are perma bears hurt its reputation as a useful tool. However I like to use a very simple form of Elliot Wave (no need to know all the crazy rules) to help with my analysis and also see some nice trading opportunities, an it's very easy to differentiate when a stock is in a true downtrend, or simply having a bullish pullback in an uptrend.
Anyway watch the video
Tutorial
Posted by iaranger on 21st of Jul 2011 at 03:03 pm
Thanks Matt
Great Information
Matt, Thanks for the Elliot
Posted by sbwoman on 21st of Jul 2011 at 11:42 am
Matt, Thanks for the Elliot Wave tutorial. I think it was very interesting and informative. Another tool for the tool belt.
Thanks for the tutorial, Matt.
Posted by algyros on 21st of Jul 2011 at 09:28 am
Thanks for the tutorial, Matt.
I see your point about how you use Elliot Wave. But you might want to address the problem I have with the theory: namely that it seems to have consistent predictive value only retroactively.
In your view, can one use Elliot Wave to make consistent predictions about the future behavior of a stock? In other words, do you think that it's possible to successfully trade a stock in realtime using Elliot Wave? Even if it's "one piece of the puzzle," for it to be a useful piece of the puzzle it should be able to make consistent and verifiable predictions.
It might be interesting to paper trade a stock or etf using just Elliot Wave information and see what kind of results ensue.
algyros - my EW video
Posted by matt on 21st of Jul 2011 at 10:05 am
algyros - my EW video was not about using EW as a prediction tool, it was about how to easily spot if a pullback on a strong stock in an uptrend that is bullish consolidation via a glance of the eye vs using all kind of complicated rules etc. As I showed in the video, I didn't show how to predict where the pullback would end or how long it would last, I used the 200 MA and Fibs for that. Just the choppy over lapping moves are a very easy thing to see that it's a bullish consolidation and look for a buying opportunity.