Applying Elliott Wave Theory Profitably (Hardcover)

~ (Author) "In his 1938 monograph, "The Wave Principle," R.N. Elliott wrote: "Very extensive research in connection with practically all human activities indicates that social-economic processes follow..." (more)
Key Phrases: low set week, market psyche, wave count, Elliott Wave, United States, Dow Jones Industrial Average (more...)

Editorial Reviews

Product Description

"I have always found Elliott Wave difficult to understand and more difficult to apply, but finally Steve Poser has written a book that makes sense and is born from real experience. This is not Elliott made easy but Elliott that makes sense. Hats off to Poser for creating the book the marketplace has needed for so long."
–Bruce M. Kamich, CMT
Adjunct Professor of Finance at Baruch College and Rutgers University
Past President of the Market Technicians Association

"Steve Poser is one of the few people I’ve met who can integrate Elliott Wave analysis into a normal conversation on the markets and make sense."
–Michael Kahn
Editor, Quick Takes Pro technical newsletter
Technical Analysis Columnist, Barron’s Online

Numerous books have tried to capture the essence of Elliott Wave theory, but they either made Elliott more complicated than it needed to be, or, in an effort to overcome the perceived complexity of analysis using Elliott, oversimplified the process.

In Applying Elliott Wave Theory Profitably, author and Elliott Wave expert Steven Poser takes a fresh approach to this proven trading strategy, giving you the most well-rounded and straightforward lesson on how to make money using Elliott Wave theory. Drawing from his many years of Elliott Wave experience, Poser:

• Explores how and why technical analysis works, and shows you where Elliott Wave theory fits into that picture
• Reveals each of the basic and advanced patterns that the market might trace out and discusses the market conditions that typically produce these patterns
• Outlines how to build an efficient trading plan
• Illustrates how to continuously update your plan in real time as the market provides you with further information by way of a constant stream of prices, volume, and news
• Examines how to review the market from multiple time frames, so you know what degree of price retracements to expect, as well as what your risks and rewards may be

Written in a clear, easy-to-understand manner, Applying Elliott Wave Theory Profitably is a thorough and essential resource for any trader looking to better understand a proven trading strategy and boost their bottom line.

From the Inside Flap

During the late 1920s, Ralph Nelson Elliott theorized that stock markets do not behave in a random, chaotic manner, but rather that they move in repetitive cycles, which reflect the actions and emotions of humans caused by exterior influences or mass psychology. Elliott believed that the ebb and flow of mass psychology reveals itself in the same repetitive patterns––illustrated by recognizable "waves." It was at this point that Elliott Wave theory was born.

Since its discovery, numerous books have tried to capture the essence of this revolutionary forecasting method, but they either made Elliott more complicated than it needed to be, or, in an effort to overcome the perceived complexity of analysis using Elliott, oversimplified the process.

In Applying Elliott Wave Theory Profitably, author and Elliott Wave expert Steven Poser makes sense of this proven trading strategy and gives you the most well-rounded and straightforward lesson on how to make money using Elliott Wave theory. Drawing from his many years of Elliott Wave experience, Poser:

• Reviews how and why technical analysis works, and shows you where the Elliott Wave theory fits into that picture
• Reveals each of the basic and advanced patterns that the market might trace out and discusses the market conditions that typically produce these patterns
• Outlines how to build an efficient trading plan
• Illustrates how to continuously update your plan in real time as the market provides you with further information by way of a constant stream of prices, volume, and news
• Examines how to review the market from multiple time frames, so you know what degree of price retracements to expect, as well as what your risks and rewards may be

Filled with in-depth insights, expert advice, and a set of sample trading plans, this book will take you step by step through the process of understanding how and why Elliott Wave theory works––as well as show you when and where you are most likely to profitably apply Elliott Wave to improve your trading. You don’t need to trade every day to gain substantial profits, but when it is time to trade, using Elliott Wave theory can make all the difference.

See all Editorial Reviews

Product Details

• Hardcover: 256 pages
• Publisher: Wiley; 1st edition (July 18, 2003)
• Language: English
• ISBN-10: 0471420077
• ISBN-13: 978-0471420071
• Product Dimensions: 9.1 x 6.1 x 1 inches
• Shipping Weight: 14.9 ounces (View shipping rates and policies)
• Average Customer Review: 3.8 out of 5 stars  See all reviews (21 customer reviews)
• Amazon.com Sales Rank: #70,863 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

38 of 40 people found the following review helpful:

5.0 out of 5 stars Thinking Like a Trader with Elliott Waves, September 10, 2003

By	Professor Donald Mitchell "Jesus Makes Me a P... (Boston) - See all my reviews (TOP 10 REVIEWER)

Having read and reviewed a number of books on Elliott Wave theory, I found this one to be much more helpful to me than any of the others.

I strongly agree with the author that Elliott Waves make more sense when considered in the context of other fundamental and technical information, the business environment, and key social circumstances. I found the way he described how to combine these data to be the most valuable part of the book.

The issue of Elliott Waves or any other technical tool is that it is ambiguous what is going on at any point in time. Even after the fact, many technicians will disagree about what the charts show. So how do you decide what trade to make? This book contains many excellent detailed examples that will help you understand, and gives you a format to follow for the future. The essence is to find potential trades with much more likelihood of gain than loss . . . and a gain potential that is much larger than the loss potential as well. How do to that is well described here for stock indices, stocks, bonds, currencies, and commodities.

What if you just want to better understand Elliott Waves? The book is superb in that dimension, as well. I found that I improved my understanding of how to apply Elliott Waves to stocks by looking at how they work in commodities more than I would ever have simply by looking at lots of stocks.

Mr. Poser is a clear writer. The material is dense though. You are taken through detailed analyses of many charts. These discussions take time to think through, but are rewarding. I recommend reading the book in small bites. I reviewed about 5 pages a day, and found it worked well at that pace.

I especially enjoyed the last chapter where Mr. Poser took a look at what may lie ahead for the stock market.

After you finish this book, you should probably read something by Robert Prechter as well.

After you finish this fine book, I suggest that you look for yet more technical tools to help you understand how to make better investment decisions. If you decide that rapid-fire trading isn't for you (it certainly isn't for me), remember that you can outperform 90% of all investors by putting your money into indexed mutual funds.

15 of 15 people found the following review helpful:

5.0 out of 5 stars Well Written, July 17, 2006

By	David Keller (New York, NY) - See all my reviews (REAL NAME)

I recently completed the CMT (Chartered Market Technician) exam process- this is a professional exam for technical analysis, consists of three levels. The third level has a substantial section on Elliott Wave. I have read other books on Elliott, but this book was in my opinion the best written. Mr. Poser made a difficult subject much easier to digest. The real strength here is in discussing what NOT to do when using Elliott Wave- by keeping these tips in mind you will find you can readily apply the techniques to charts from various financial markets.

I highly recommend this book to anyone taking the CMT exam, especially those who don't use Elliott Wave in their trading and/or analysis.

18 of 19 people found the following review helpful:

5.0 out of 5 stars Best Elliott Wave book so far, November 25, 2003

By A Customer

Poser has put together a very good book. He shows you how to use Elliott Wave without turning it into some sort of mystical religion. He does not say that there are times that you cannot trade with Elliott, but he does tell you what to look for when the patterns start to get sloppy. He also shows you how to do your research (and turn it into a trading or investing strategy) and very importantly shows the link between market psychology and the wave patterns. The book also explains how to use Elliott along with technical indicators and classic chart patterns.

No book is perfect, and although Poser does give you detailed trading plans, and also presents some trading tips, I wish he would have made the tips a more consistent feature throughout the book. His clear writing style and clear depth of knowledge makes this an excellent choice for somebody who want to learn how to use Elliott Wave and why it actually works.

In the end, the book is aimed at showing you how to use Elliott to trade, which is why this book is a buy for anybody interested in learning how to use the Elliott Wave Principle in their trading.