Mastering Elliot Wave: Presenting the Neely Method: The First Scientific, Objective Approach to Market Forecasting with the Elliott Wave Theory (version 2) [Hardcover]

Glenn Neely (Author), Eric Hall (Author)

Book Description

Publication Date: April 1, 1990

This work presents the first scientific, objective approach to market forecasting with the Elliot Wave Theory. Neely provides a detailed guide for all investors serious about finding accurate solutions to difficult markets.'

Product Details

• Hardcover: 223 pages
• Publisher: Windsor Books; 2nd edition (April 1, 1990)
• Language: English
• ISBN-10: 0930233441
• ISBN-13: 978-0930233440
• Product Dimensions: 11.3 x 8.8 x 1.2 inches
• Shipping Weight: 2.6 pounds (View shipping rates and policies)
• Average Customer Review: 4.1 out of 5 stars  See all reviews (36 customer reviews)
• Amazon Best Sellers Rank: #625,364 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

59 of 61 people found the following review helpful:

4.0 out of 5 stars Not for the faint of heart--for serious traders only!, April 18, 2004

By 

Rob Ryley "Robert" (Northeast NJ) - See all my reviews
(VINE VOICE)   

This review is from: Mastering Elliot Wave: Presenting the Neely Method: The First Scientific, Objective Approach to Market Forecasting with the Elliott Wave Theory (version 2) (Hardcover)

Just about 5 years ago, I began seriously studying the markets. I was heavily influenced by many experts that this thing called Tecnical Analysis was a bunch of BS.

Five years, and thousands of dollars (in profits) later, I can tell you that technical analysis is a crucial tool in dealing with the fundamental uncertainty we traders deal with every day.

Even when I was basing decisions on conventional technical techniques, Elliott Wave Theory seemed like tea-leaf reading. But knowing what I know about the markets, I kept an open mind. I learned how to apply the basic rules, and was amazed at what I saw. There is much more to Elliott than I thought.

Neeley gives a thorough method for applying the Wave theory based strictly on price action. He guides you from analysing individual swings, to grouping them correctly into wave patterns. Once you have a workable count, it is possible to place a low risk, high profit trade on.

The key value in all of this is that you can see a number of possible scenarios. The one problem with Elliott is the issue of alternate counts. I've found that alternate counts often disagree as to the magnitude of a comming move, and less often on the direction, if you are using multiple timeframes.

I've actually worked through most of Neely's rules. I set up a spreadsheet to calculate the retracement levels he indicates in his text. Having said that, Neely omits one crucial bit of info. His method is based on retracement levels. Yet, he never tells you whether to use price levels, or percentages to measure the length of waves. Since he indicates you should use recent data, I've assumed he meant price lengths in dollars (or whateve currency you use).

This is a crucial omission, as price targets are determined by the relationships among waves. Sometimes using price lengths, rather than percentages, renders impossible targets. The only way around this is to use percentages for longer longer time periods, and price lengths for shorter ones. Posner covered this in Applying Elliott Wave Theory Profitably.

One problem is that Neely gives extensive wiggle room in his use of retracements to define patterns. This means his categories, while appearing rigorously objective, actually overlap to a considerable degree. You will often be left with 2 choices for a label, despite applying the rules consistently. That isn't necessarily Neely's fault--he is being realistic. No one ever said the market was easy.

I wouldn't tackle this text if you are unfamilliar with classical technical analysis. Elliott wave can be a frustrating theory. I've gotten headaches trying to count corrective patterns. Despite what Neely says, conventional indicators, candlesticks, and chart patterns can be very helpful when wave counts are not. Classical technicals and Elliott often overlap--suggesting the same conclusion. When they do, then you know you have a potential profit opportunity.

But if you are familiar with classical methods, and you are serious about learning Elliott Wave, then I can recommend this book.

66 of 71 people found the following review helpful:

5.0 out of 5 stars Mastering, May 3, 2001

By 

Tuncer Sengoz (Istanbul Turkey) - See all my reviews

This review is from: Mastering Elliot Wave: Presenting the Neely Method: The First Scientific, Objective Approach to Market Forecasting with the Elliott Wave Theory (version 2) (Hardcover)

This book is actually for those who want to "master" the Elliott wave theory. Though Mr Neeley explains his method from the scratch, you have to spend a great amount of time to understand how to identify the waves and how you should apply the rules and guidelines even if you know the theory. After long hours of studying the book and applying the techniques on the price charts, you will surprisingly find out that your view on the technical analysis and Elliott wave theory changed.

"A large portion of market technicians spend their time trying to manipulate price data to find that "magical" key-indicator. How can a transformation of price data be better than the original data?" says Mr Neeley. If you're in the search of the "magical" key indicator(s), this book is not for you, since there's not even a word about the technical indicators, but when you finish studying the book, you will see that you don't need to look for an indicator.

Since Fibonacci numbers and golden ratio are the most important parts of the wave theory, you have to know how to apply them on the charts. This book is the best one I've ever read about how to apply Fibonacci techniques on a price chart. Not only the price distance, but the time elapsed to form the waves are dependant with the Fibonacci numbers and this book teaches you how to use them.

Author also defines clearly how to apply the Rule of Alternation, Rule of equality and Rule of Complexity. Further you read, you learn how to analyse complex wave structures and what to expect when the waves are advancing to form larger waves.

I have to warn those who want to learn some trading techniques using the Elliott Theory or Neeley Method, since there's nothing in this book about trading, but do not forget that this book is mastering the the Elliott Wave. Do you think you still need a pre-made trading technique after mastering the theory? I don't think so.

47 of 51 people found the following review helpful:

4.0 out of 5 stars Good, but heavy reading., February 4, 2000

By 

Bradley Morehouse "Lover of Truth" (Cape Girardeau, MO USA) - See all my reviews
(REAL NAME)   

This review is from: Mastering Elliot Wave: Presenting the Neely Method: The First Scientific, Objective Approach to Market Forecasting with the Elliott Wave Theory (version 2) (Hardcover)

You want to know Elliott Wave theory better than you know the menu at McDonald's? This is the book to study. Figures, facts, rules, laws...it's all here. Don't expect the wisdom to come easily though. This is seriously hard stuff to absorb. If you do absorb it however, you'll KNOW the markets you follow and what they're doing intimately.

Actually I gave this book only four stars only because I subtracted a penalty star for bogus reviews. Really now...did whoever (the author?)think we wouldn't catch on? And in the future maybe they could at least put in something other than the endorsements on the back of the book.