Customer Reviews

Elliott Wave Principle: Key To Market Behavior

5 star:		(9)
4 star:		(1)
3 star:		(1)
2 star:		(0)
1 star:		(1)

 

 

This book is awesome, it teaches you a way of technical analysis that nobody else can even imagine. It implies that the markets are patterned, and that those patterns repeat themselves in all time frames, from 1 day to even 5 years or more.

Elliott Wave consists of 13 basic patterns. These patterns are formed by waves and/or market movements. If you can learned to recognize this patterns you can make a lot of money by been able to identify the next move.

Elliott wave analysis has rules and guidelines that will help you to know where to place your stop, how to recognize these patterns, how to make the correct wave count within these patterns, will give you the tools to predict price objectives and time frames for those price objectives, and a stop or a limit that will negate the whole thing if been wrong. The result is method that offers high probability trades that works the majority of the time if you are a discipline investor.

This book alone won't be enough to make you a great trader, but it would improve your trading dramatically. One tip, you need to learn to validate those wave counts and/or patterns by using several technical indicators that should show certain divergences in certain faces of those patterns and/or waves. The combination of Elliott Wave analysis with traditional Technical Analysis beats any other form of analysis you can possibly imagine.

In longer time frames, you need to combine those two with economic cycle theory. I like the Princeton Model. And see the charts and technical indicators in weekly or even monthly basis, and probably in logarithmic scale.

Some said that Robert Pretcher was wrong by calling the market top in 2000. Well he wasn't, neither the S&P 500, nor the Nasdaq has regained their 2000 highs, in more than 7 years. And in real terms, as well as in gold terms, the DJIA is still below its 2000 highs.

But indeed that doesn't matter to me, I am a position trader, an options position trader, I buy calls and puts, and create spreads, with time frames of two to four months. And believe me, the only way to win with options these way consistently, or at least, most of the time, and grow your money fast and quickly is by using Elliott Wave analisys. If you don't dominate this technique, stay away form options. If you do, be discipline, and trade only deep in the money options.

Appling it in for real is a little more difficult than understanding it, and it could probably take several months to learn to do it correctly and to obtain good results consistently, that is assuming you are already a fairly good market technician and have several years of experience investing in the market.

Well, it works for me, so I hope it would work for you too.

Good luck.

This is a slightly technical (you can skip to the good stuff) explanation of the hightly rated Elliott Wave Theory for predicting direction and breaks in the stock market. Even if you are not into stocks the book is a good read to show how mathematical theory applies in everyday life. While researching a lecture to be given to gifted students back in the 90's I found a book published in 1964 that laughed at the theory outlined here. The '64 book dedicated a small paragraph to the theory and tossed out the statement to the effect, if one believed this theory, the stock market would have to be at a certain incredible level in the early 90's. A quick check of the market confirmed that it was!

If you want to learn elliott wave principle, this is the book for you. It's quite a dry read but going through it once and using it to refer back to while trading is well worth it. It also works well if you have trouble sleeping since this book will knock you out in minutes after reading a few pages. Despite it's dry content, it is extremely useful and has helped pave the way for a good trading career. This is a must read for any market technician.

if you want to make money out of the market know this, its not easy and never will be easy self discipline has a lot to do with it, but the tools should be also good, I have read different analysis theories that include chart patterns cycle analysis even went to RSI detailed analysis (based on andrew cardwell work) and yes all these stuff do help a lot and you should know all of them BUT elliottwave analysis is what you should fully depend on the rest look at them as helping tools to enhance your elliottwave analysis, in this book Robert explains how the market moves in waves and how you can actually interpret these movement and predict future markets movement and this is how you can use it to do your trading ! Yes you can make a lot of money but you have to be very careful and develop strict stop loss strategy especially in forex markets. I highly recommend all traders to read about elliottwave analysis.

This is THE book that reintroduced Elliott Wave analysis in the early 1980s. In 1987 its author made a famous call predicting the stock market crash of that year. The book is worth having for its historical importance. However, most of what is written in the book is still valid. So I would say that this book is still the best introduction to Elliott Waves in 2010.

There are many problems with Elliott Wave, the author of this book has been called a perma-bear predicting crashes that never materialised. Having said this, I do have great respect for Elliott Waves because they seem to have some predictive power, at least in certain situations. This book provides the best book coverage of the theory.

This book is required reading for levels 1 thru 3 of the Chartered Market Technicians (CMT) program because it covers all the basics of the Elliott Wave Principle even though the book was written in 1978. Bob Prechter has devoted the major part of his professional life to the study of Elliott Wave theory and application so therefore imminently qualified to write this book with Charles J. Collins.

So why did I give this book 3 stars? In my opinion, Prechter makes the subject more complicated than it has to be. At the very least, he runs the risk of alienating neophytes who will be overwhelmed with his descriptions and analysis and wonder how in the world they will ever make sense of markets from an Elliott Wave perspective. The challenge is that Elliott Wave is highly subjective which is why very few experts ever agree on wave counts and forecasts. Even Prechter himself, who is extremely generous of his time with anyone who shows a genuine interest in the subject, has enjoyed periods of great success punctuated by times when he was very wrong. For example, he warned subscribers in August and September 1987 that a top was forming in the Dow saving those who listened from getting caught in the big October drop. But then he wrote a brilliant but highly bearish article in December 2003 entitled A Developing Depression for Technical Analysis of Stocks & Commodities magazine which talked at length about the challenges US stock markets faced that in retrospect was the early stages of the 2003-2007 cyclical bull market.

I have come to the conclusion that while the behavioral observations of founder Ralph Nelson Elliott in the 1920s and beyond were brilliant, few since have truly mastered his brainchild due to the highly complex and subjective nature of applying it to markets. The trick is in focusing on the wave patterns that have a high probability of unfolding as dictated by Elliott Wave and not trying to trade all the messy corrective patterns.

One day, someone will write a definitive guide that takes a computerized approach to EW and develop specific probabilities of wave outcomes with different stocks and futures so that traders will quickly be able to isolate high probability EW patterns to make money. Richard Swannell of Elliottician.com devoted his life to such a goal and did develop a series of very interesting computer programs to trade but the jury is still out on how effective and reliable his last iteration is. Unfortunately, he passed away at an early age so someone else will have to take over and write the book.

Anyone who has read Prechter's many books over the years realizes that this book is his best...because of Frost in my opinion.

The macro principles and perspectives in this book are very insightful. Well worth the read...
--- Irrespective of whether or not you follow Elliot Wave techniques or not.

Book gives excellent introduction to the wave principle. Do not expect to "get it" after the first reading.

This book is a fundemental supplement in the library of any one interested in technical analysis. It needs time and concentration to understand but it will payback i believe.

This is an amazing book.
It is a must for every trader using technical analysis.