Harmonic Elliott Wave: The Case for Modification of R. N. Elliotts Impulsive Wave Structure
Look around the Elliott Wave forums and observe the discussions. Much of it will be discussing economic data and what's happening elsewhere that may affect the market they are trading. The general story about putting 5 Elliotticians in a room and when they come out they have 20 alternative wave counts is rather understated. These forums generate a plethora of wave counts, traders scrambling to find the best fit - often for their fundamental bias - but always in retrospect. Wave ratios? No, hardly ever mentioned and never worked correctly... Yes, I used to be like that, dedicated to the Elliott Wave Principle but fumbling around trying to work out what is happening, scratching my head when commonly used ratios just break down. Others used to appreciate my efforts but I was never satisfied as Elliott Wave never achieved what was promised. So I took the back door route. I ignored the wave structure and tried to work out where there were related waves. It was a labor of love, sometimes frustrating, sometimes generating remarkable results. The finally it all dawned. The market's use of Fibonacci ratios was incorrect. The impulsive wave structure Elliott proposed was clearly wrong. By introducing an element of the Dow Theory and identifying the manner in which Fibonacci and harmonic ratios worked within the wave structure the results became astonishing at times. Even now I can sit back in wonder at how these structure repeat and with such accuracy. Is it the Holy Grail? No of course not. Nothing ever can be as it will be self defeating. I get things wrong but the difference I find is that most of the time I know *where* the structure breaks down. If you read the forums that is something very few, if any, have any concept of... It provides more confidence in your analysis. Often you can spot how the structure doesn't develop as it should for the wave that is anticipated. The Harmonic Wave structure talks to you and warns when something isn't quite right. In this book I try to convey these techniques, explain the manner in which price develops. I have dedicated a large chapter to providing practical guidelines when faced with ambiguous situations, how to spot something going wrong and the common issues faced. It will require dedication and focus but for those that make the effort I feel Harmonic Elliott Wave will generate an awfully big benefit in your analysis/trading. Good luckIan Copsey