You cannot predict the future, but you better know when it's here. Our Square of Nine-Fibonacci-Elliott-JM Hurst techniques can help you do that.
Elliott Wave International (EWI) is the leading authority on Elliott Wave theory and the application of Elliott Wave analysis to the global stock markets, commodities markets, and to forex trading. You could say that all roads Elliott lead to Robert Prechter and EWI. If you want to learn Elliott Wave and add it to your technical analysis toolkit they have a free Elliott Wave tutorial (must join Club EWI - free) that will get you up to speed quickly on Elliott Wave patterns. Subscription based market commentary covers all the major international markets. Free in-depth articles from EWI available here. Although I do work as an affiliate for Elliott Wave International, I have followed Bob Prechter's work since 1982 and am confident in the quality of his products and services.

We have our own Elliott Wave Basics tutorial to get you started.

Although not "pure" Elliott Wave there is a method we call Momentum Wave Counting that side steps much of the complexity inherent in the pure method. This short article on Elliott Wave Fractals is the starter piece.

Elliott Wave animation


If you have been trading stocks online you have heard of elliott wave analysis. Elliott wave is method of technical analysis that uses chart patterns and Fibonacci ratios to determine the probability of different outcomes for the future price movement of publicly traded stocks, commodities and foreign currencies. It is equally adept on the Indian stock market as on the NYSE. Penny shares usually do not have enough public participation to develop reliable wave patterns. There are more technical and convoluted definitions of elliott wave but those definitions would introduce arcane terms that are not particularly useful at the introductory stage. Do not make learning the many ways of how to trade stocks any more confusing than it has to be.

The key concept is that elliott wave is pattern based, and that certain chart patterns will likely relate to each other in more or less predictable ways and in certain, specific Fibonacci ratios. An experienced analyst can look at stock or commodity charts with sufficient data and quickly rough out one or more established elliott wave patterns that would indicate that the stock was in a bullish, bearish or corrective trend. Short term trading is possible with intraday charts. If that is all you could do with elliott wave analysis it would still be valuable stock education for any stock trader. The old saying that the trend is your friend is as true today as it was when it was first coined a century or so ago.

Elliott wave analysis is a learned skill. Elliott wave theory has only about a dozen rules and guidelines so the amount of basic information that you have to learn to get started is not overwhelming. Like any learned skill proficiency in its application demands diligence and practice. Anybody who expects to spend an afternoon reading a book to become an elliott wave expert is not being realistic and would probably get more out of chasing down some stock tips. It is probably not unreasonable to expect minimum proficiency after the analysis of 100 charts. Certainly 1,000 charts would be better.

Do not listen to those who have no clue what they're talking about. When you apply the rules and guidelines elliott wave analysis is an objective method. The major criticism of elliott wave analysis is that there is seldom if ever only one wave count to consider and that it is not 100% accurate in any case. Welcome to the real world. Nobody and nothing can predict the future price of a stock or commodity with any certainty, but is not getting the portent of a handful of most likely outcomes a worthwhile endeavor?

Perhaps the greatest value from elliott wave analysis is you can quickly comprise a short list of probable outcomes, whether or not those outcomes are the same as the one that you would like to see. A professional elliott wave analyst knows the price levels that will negate a wave count and when one of those price levels gets hit he is immediately prepared to adapt his outlook to what the revised pattern is now showing as the most likely outcome. The worst mistake elliott wave newbies can make is to have pride of authorship of any particular elliott wave count.

In conclusion you will get out of elliott wave analysis about the same as your expectations going in. If you are looking for something that can predict the future 100% of the time then you will find it. There will almost always be a wave count that can satisfy your expectations. Unfortunately reality gets in the way of your expectations and the future that you wanted may not be the one that you get.

You can benefit from elliott wave theory and analysis without spending the time and effort it takes to become a proficient wave counter yourself. That way is to have somebody else do it for you. I have subscribed to the several iterations of Bob Prechters' Elliott Wave Theorist for many years. If you are going to pay somebody to do the work for you then why not choose the best? Over the years Prechter has migrated his analysis to the longer view of things so I would not recommend the Theorist to anybody looking for daytrading ideas or a hot stock tip that may make a quick buck or two. Prechter's company, Elliott Wave International, does provide several short term services across the trading spectrum of stocks, commodities, and Forex for day traders and other opportunistic short term traders.


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