Elliott Wave theory - why does it work?

bvpraveen · #1 5th May 2007, 12:27 PM

Hello all,

Try to go through the last three chapters in the below tutorial. It is very interesting and neatly explained about:-
--why Elliott Wave works.
--why markets repeats in a repetitive "form"
--Elliott wave principle and natures law
--etc

Even conventional TA practitioners can go through it, treating it as an article. It will be interesting, guys.

http://www.elliottwave.com/tutorial/Default.aspx
[You should sign up for reading it, I guess.]

Praveen.

hitesh sabharwal · #2 5th May 2007, 06:00 PM

i don't think elliot wave workes the amount its been hyped,in january,elliot showed 15400 targets,i kept on asking people to start shorting but almost all of them had elliot targets.markets are beyond technicals and positions need to be seen to understand expected reactions.sometimes good news isn't reacted like this friday,inflation good news trapped bulls rather bears,so reading the story or whats building up inside is more important and cash markets in india most of the times follow fno markets buildups,so if u can read fno market positions well,ur onnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!

bvpraveen · #3 5th May 2007, 07:05 PM

No Hitesh, I disagree with you

The only thing I can accept from your point is the fact that, markets are beyond technicals.

The main reasons EW is not as popular as conventional TA are:
1. Popular claim that EW is highly subjective.
2. One need to work hard to understand about EW and the markets. There are numerous rules and logics that needs to be "understood", note that I didn't say by-heart them.

But I wonder how EW is considered pure subjective. There are fixed rules, which can't change. The guidelines provides with probably wave counts. As long as the order of probable wave counts are agreed upon, everything is fine.

Praveen.

amitt29 · #4 5th May 2007, 07:18 PM

Quote:

Originally Posted by hitesh sabharwal

i don't think elliot wave workes the amount its been hyped,in january,elliot showed 15400 targets,i kept on asking people to start shorting but almost all of them had elliot targets.markets are beyond technicals and positions need to be seen to understand expected reactions.sometimes good news isn't reacted like this friday,inflation good news trapped bulls rather bears,so reading the story or whats building up inside is more important and cash markets in india most of the times follow fno markets buildups,so if u can read fno market positions well,ur onnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!

I dont see u joining the forum in Jan,hence....

BVP,theres no such thing as probable count there can only be two counts possible at a time,and that arises in extensions and in irregular ABC's.But there also the amplitude of adjacent waves and the fact that an irregular can occur only once in wave of same degree solves the problem of counting.
I whole heartedly disagree with ppl when they say EW doesnt work,its because of their lack of understanding of the theory.

bvpraveen · #5 5th May 2007, 09:52 PM

Quote:

Originally Posted by amitt29

I dont see u joining the forum in Jan,hence....

BVP,theres no such thing as probable count there can only be two counts possible at a time,and that arises in extensions and in irregular ABC's.But there also the amplitude of adjacent waves and the fact that an irregular can occur only once in wave of same degree solves the problem of counting.
I whole heartedly disagree with ppl when they say EW doesnt work,its because of their lack of understanding of the theory.

Hi Amit,

Regarding probable count, I too was trying to tell the same thing. We can have an alternate count. Since I'm still learning EW, I couldn't comment much on alternate counts. But I will remember your point.

Once the understanding of EW principle improves, I'm able to understand the concepts better now. Sorry for asking lots of basic questions, in your thread.

Praveen.

amitt29 · #6 5th May 2007, 10:31 PM

Its ok yaar,EW is very different from other TA tools,because its just like spotting waves some can see them from a distance and some catch em late.

Have u ever been near a sea shore, its just like spotting the waves as they try to form,some finish up b4 hitting the beach rocks(failure),some end up on the beach and some give a good splash(spike on an ED,with an extension).Ajay once told me about this.

Happy Wave spotting.

pshirurkar · #7 5th May 2007, 10:37 PM

hi,
All the times market is not behaving strictly as per the technicals, neither it is depending on demand /supply nor on sentiments.sometimes it is beyond technicals.
So what mr hitesh sabharwal say"WHAT BUILDING UP INSIDE IS MORE IMPORTANT' may be true
it will be beneficial to take into account this along with the technicals
regards.

bvpraveen · #8 5th May 2007, 10:51 PM

Quote:

Originally Posted by amitt29

.......

Have u ever been near a sea shore, its just like spotting the waves as they try to form,some finish up b4 hitting the beach rocks(failure),some end up on the beach and some give a good splash(spike on an ED,with an extension).Ajay once told me about this.

....

That an interesting interpretation.

Meanwhile I hope you'd read those three chapters before itself. Golden Ratio, Golden Spiral, are all startling, in their various forms of real life.

Praveen.

winstonn · #9 5th May 2007, 11:33 PM

Hi all,

elliott theory works! but one needs to take both possible views regarding the unfolding of the future pattern .

If you trade elliott waves = success most of the time
If you try to predict the next pattern = failure most of the time

this is my view, improvements welcome!

Regards,
Winston

hitesh sabharwal · #10 6th May 2007, 01:10 AM

bv praveen and amit 29,i can only say,what ur talking is pure technicals and i wasn't here in jan but am there on orkut in 2-3 communities,anyhow beyond this.i don't still agree with much of ur elliot waves coz when reversal happens,elliot takes too much time to spot it and oppurtunity is lost and you also can get stucked by seeing the pattern formation.

beyond all this,one fact remains,all these technicals change within few days,if u can't read positions in the market,pure technical analysis won't do much.
pick up the best traders in the world,i am using the word traders and not investors here.they are more interested in things like sentiments,positions ,near term fundamnetals,global sentiments and trading pshychology.
big peopl's and fund/fii activity forms ur technical analysis patterns,they don't follow that.

see ur technical analyst coming to television.like prakash gaba,ashwani gujral,etc.etc.
go and find what wealth they have created and u will get ashamed if anyone of you is following them.

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