This Swing Trading Strategy has been developed and successfully used by our founder and CEO, Paul Bratby for over 12 years as both a private investor and Money Manager. For the time being the blog will remain open for reference and educational purposes, however the weekend reports will not for the foreseeable future. I love talking with students and their excitement, positive attitude, and seeing my father’s work continue on helping people better their lives means a lot to me.
A Saeculum is a long-term cycle that has existed throughout history. It lasts on average about years and consists of four phases or turnings, keytomarkets login each one about years. Notice these secular cycles have averaged about 17 years each going back to a Grand Super Cycle top in 1929.
Wave 2 down is a reaction to a rally in wave 1 up and therefore shall never breach the starting point of the wave 1 up. Or we can say that wave 2 shall not retrace more than 100% of the wave 1 up. A breakout above the September Micro 1 high at 3020 has occurred, ushering in a series of potential wave 3 moves higher. With this weeks continued move to new all time highs we feel the market has gone high enough and continues to look impulsive enough to eliminate the bearish count we’ve previously carried on the DOW.
Learn more how demographic trends can work for your long term investments in our investment newsletter. For traders, “money management” is a nuts-and-bolts approach to actively manage your money throughout the trading process to improve trading results. Why is this a critical concept for YOUR daily trading activity?
You graciously shared your life’s work with the world & greatly enhanced my ability to study the factors influencing global financial markets as well as the collective investor consciousness. It is also worth noting that the opposite can also happen. At times, the start of a bearish impulse wave can start on top. It is a bullish period when the asset price continues rising. Finally, in the final part, the price starts rises again.
Our 3180 pivot became both a magnet and stop sign for the price action the week. This gives the second largest rally for this uptrend of 113 points, without a meaningful pullback. We can now count seven qualified subdivisions from the downtrend low at 2856. This latest rally puts pressure on a potential breakout of the inflection point mentioned last week.
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You may remember that Elliott introduced the Ending Diagonal structure where wave 5 is subdivided into five smaller waves but waves i, iii and v are constructed as a-b-c’s . The “Leading Diagonal” can be found on the chart above at the beginning of the five wave fractal, in wave 1. As you can see, the five superforex broker micro waves i, ii, iii, iv and v together compose a large wave 1 up. But note that each of those five micro waves, impulsive and corrective alike, is composed of three waves a-b-c instead of canonical five micro waves. Reflect over what this means for real estate, stock markets and bond markets in Europe.
Can wave 2 be a triangle?
At times, internal wave B may be a triangle. Unlike wave 4, however, wave 2 cannot consist entirely of a triangle, a triangle in wave 2 must be restricted to an internal wave, such as B wave, or in a complex correction X wave.
SPX blew through the negative divergence last week, reached extremely overbought at the high and finished the week just inside the neutral zone. SPX reached yet another all-time high at 3226 this week, as it broke out of the inflection point that we’ve been discussing since the last significant pullback early this month. SPX gapped over 3206 on Friday, which solidified another subdivision higher for the Micro wave 3 uptrend that’s been ongoing from the early October low at 2856. The December rally from 3070 has gained 156 points in 13 trading days without a meaningful pullback.
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On May 8, 2022, Glenn Neely presented a free webinar on the Wave structure of THREE markets – the S&P, Gold and T-Notes – which are all at crucial junctures. Following that presentation, on May 20, Mr. Neely shared additional insight. Here is the link to this free webinar and Mr. Neely’s additional forecasting observations. Under Wave theory, markets experience periods of predictability and unpredictability.
On a single day, millions of people from around the world struggle to make decisions about financial assets. Their struggle is on how to predict the direction in which the securities will move. For a limited time, purchase the 2-week Trial subscription for only $39 and get 2 weeks free. (You save $141.) This means you can “test drive” all NEoWave Trading and Forecasting services for 4 weeks. SAVE BIG on NEoWave’s first-ever NEELY RIVER PROFESSIONAL TRADING Group Course. We’re now booking for February 2019 for this 4-person online professional trading seminar, personally taught by Glenn Neely.
Article #2 of 7: Elliott Wave analysis: Glenn Neely’s tips for market selection, trend identification, timing & exit strategy
The Elliott’s trading system was accidentally established by Ralph Elliott who decided to study market behaviour in his later stages in life. After spending time learning and analysing the markets, Elliott came up with the book, ‘The Wave Principle’ where he published his opinions. In it, the traders use one or a combination of the technical indicators that are provided by the brokers. In this 3-minute video on NEoWave’s Forecasting service, you’ll see several example Elliott Wave theory forecasting charts, personally created by Glenn Neely.
Who is the best Elliott wave analyst?
Robert Prechter found Elliott's work while working as a market technician at Merrill Lynch. His prominence as a forecaster during the bull market of the 1980s brought wide exposure to Elliott's work. Prechter remains the most widely known Elliott analyst.
After a certain period, the price makes a small pullback. The two most important parts of the Elliot wave are impulse and corrective waves. In the second wave , emotion sets in and traders dump some assets which reduces the price of the pair. This is a phase where correction happens which results from human emotion. After some time, the buyer’s remorse sets in and the traders dump some of their holdings.
By the way, Wave was 2.618 times more than wave, the expansion of Wave was not enough. So, the Impulse shown as Orange line will probably be an impulse where the 5th wave is… I zoomed in on the the 12hr to better show the Elliot Wave correction, but I’m bullish based on the two recent weekly candles. The weekly has formed an inverted hammer candle followed by an unconfirmed doji candle at the bottom of a trend.
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Due to the holidays there will most likely be a one to two week break in the reports. On a personal note my Mom passed of pancreas cancer 2 short weeks after you & for that reason February https://currency-trading.org/ will forever be a month of remembrance for my two greatest teachers. Your quantitative approach to objectively interpret the Elliott Wave Principle remains your OEW legacy.
As expected, off the bottom of the corrective wave 2 down we did get an impulsive looking rally subdivided into five smaller waves. However, the problem is that rally normally only slightly exceeds the top of the wave 1 up. Instead of an impressive rally that was supposed trading 212 autoinvest to be longer than the wave 1 by at least 61.8% we normally get a move equal in size to the wave 1 up. And then we get another deep corrective a-b-c move down. Many people do not like the classic Elliott Wave theory because of “overabundance of rules and guidelines“.
SPX ended the week with a negative short term divergence, which suggests another pullback may be on the horizon. In contrast to larger impulse waves, corrective waves are smaller waves because they function as minor corrections within a much larger developing trend—the impulse wave, in this instance. Elliott proposed that a corrective wave 4 down shall never go under the top of an impulsive wave 1 up.
This price trajectory is very similar to that achieved at the beginning of this uptrend. Micro wave 3 now exceeds the nominal target for an extended third wave at 1.618x ratio to Micro wave 1, which sets up 3250 and 3380 as next likely targets for completion. There are several possibilities to consider near term, including additional subdivisions or a small third wave, so we’re waiting for further price action to sort that out. A retrace back to overlap 3154 would warn of another subdivision, while below 3070 would likely end this uptrend. This extension also suggests Minute wave iii to go beyond the 3300 target previously reported. Next target for that is 2x Minute-i, which projects above 3400.
So these are the main Elliott Wave Theory Rules and Observations that make up our Specially designed Indicator Suite. Which include ThinkorSwim, TradeStation, Ninjatrader and MultiCharts platforms. There are more parts to the overall strategy which are explained in full during the 4 hour training bootcamp which accompanies the purchase of our Indicator Suite. This Elliott Wave Theory observation is also included in our indicator suite and overall strategy. It is a further back-up to the previous observation.
Conversely, in a bearish market the impulse phase will move downward and the corrective phase will move upward. You may say I exaggerate the problem because truncations happen at the very top of the five wave up fractal or very bottom of the five wave down fractal. Some protagonists of the classic theory may say that I misunderstood the idea behind that method. However, Elliott himself became known for several accurate predictions about exact tops and bottoms in the Industrials index in 1935.
That correction, wave , is then followed by waves , and to complete an impulsive sequence of the next larger degree, labelled as wave one. At that point, again, a three-wave correction of the same degree occurs, labelled as wave two. Elliott Waves are a popular form of technical analysis which were developed by Ralph Nelson Elliott in the 1930’s. Since then we have continuously created the new and improved the old, so that your trading on the platform is seamless and lucrative. We don’t just give traders a chance to earn, but we also teach them how. They develop original trading strategies and teach traders how to use them intelligently in open webinars, and they consult one-on-one with traders.
I didn’t know that you guys work with elliot waves as well. Elliot Wave, one of our new traders, was going for his tenth consecutive positive trading day. You’re welcome for ideas and suggestions or at least say thanks in comments. Altcoins like SHIB, ADA, XRP, SOL, DOT, and LINK are going to crash hard. You really don’t want to buy these coins at this moment.