Elliott Wave Principle The Myth and Reality - 0 views
started by White Combs on 22 Dec 13
started by White Combs on 22 Dec 13
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started by White Combs on 22 Dec 13
Elliot wave concept likes enormous popularity - being called advanced technical analysis, by several agents and writers.
Elliot wave theory has a massive and devoted following - waste the theory has no basis of sound reasoning which will help you earn money!
Lets look at Elliott wave theory in greater detail and then look at reasonable industry research.
The idea was named after Ralph Nelson Elliott, who concluded in his book natures law that the movement of financial markets may be predicted by observing, and distinguishing a repeated pattern of waves.
Elliotts Serious Declaration
Elliott found the stunning conclusion that all organic phenomena are cyclical - and this consists of the financial markets. This is true, but we know that anyway - we know that at some time in our lives, we may feel rain when we venture outside, the issue is when exactly?
So, markets are cyclical - big deal! What we want from an expenditure theory, is the probability of the event - i.e. when could it be most likely to occur.
Elliott wave theory is an objective expense theory - but there's no detachment inside it at all!
It's all a subjective interpretation of troughs and peaks, in just about any timeframe you want!
Does this sound a logical predictive theory to you?
The Idea
According to rhythms within nature, the idea implies that the market goes up in a series of five waves and down-in a series of three waves.
The difference involving the Elliott wave concept and other cyclical ideas is the fact that the theory suggests no absolute time requirements for a pattern to accomplish - well thats lots of help!
The subjectivity is so good in Elliott wave, that similar to theories, everything is explainable in hindsight - but the trouble is actually predicting the future. Click here click here to research why to see this enterprise.
You can find so many interpretations of the actual peaks and troughs in several time frames, that every one will see them differently, this is hardly the basis of the predictive theory.
Elliott wave theory claims to help you to predict industry - but provides no objective method of carrying it out used. If you are concerned with police, you will probably wish to compare about high quality source wave.
Elliott Wave Theory is used by who?
1. Investors who want a good way to earn money, and are attracted to the mysticism of such tools while the Fibonacci number sequence, to estimate market retracements.
2. Investors who believe in the false assumption as possible predict market behavior in advance - and need a good way to generate income.
How Markets Actually Go
Market prices are an expression of the following:
Supply and demand fundamentals + individual therapy = cost action
This appears simple, but is in fact, complicated equation - which is impossible to estimate ahead of time. I discovered patent pending by browsing Google Books.
Trading areas via complex analysis is focused on putting the odds and probability in your favor, and no more than that. It's NOT a way of predicting the near future.
Are there better theories than Elliott trend around, to make money from the areas? - A great exercise would be to observe many take the idea seriously and poll the whole top-performing fund administrators in the world.
Subjectivity and predictive dont combination!
The Elliott wave theory is just a predictive theory that leaves every thing to subjective analysis.
Why didnt he provide a target way to generate income from it, if Elliott had worked out a predictive principle? - Like the majority of predictive practices it doesnt work.
We would all know what was going to happen, if all people may estimate the market in advance - and there would really be no market at all, as we'd all know the market price in advance!
Elliott wave theory is meant to be a predictive theory, but the only thing you can predict with it, is you'll lose your money. To get one more perspective, consider checking out: account.