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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: eichler who wrote (78712)	6/14/2001 10:04:13 PM
From: gem-x	Read Replies (3) \| Respond to of 99985

>>Hey gem-x, Been noticing your E Wave posts on Ask Dr. Bob, one of my favorite threads<< Well, basically, I was an over emotional trader who got lucky with QCOM in 1999. I bought and traded it because it's share price was 200-800, got wacked in 2000 buying George Gilder garbage like TERN XLA and AVNX, and when the market really tanked from Oct 2000 to March 2001, I spent time reading the Silicon Investor boards to get insight into technical analysis. I have an obsessive compulsive mind (which can be good and bad) and one night in Feb this year, I discovered all these cool books about TA in the Border's and read through a bunch of them...and discovered "Elliott Wave Principle" by Frost and Prechter (highly recommended reading! can be kinda abstract at times though). I find the best way to use the Elliott Wave is apart from the company of other E-Waver's. People who kinda have a small idea of what's going on can confuse you....there can be E-Wavers, but there also can be hundreds of different E-Wave opinions, and that can mess with your head. Even those big expensive Elliott Wave software programs can be wrong, thus giving you yet another opinion to mess with your skull. I attended this Advanced GET Technical Analysis/Elliott Wave seminar in Los Angeles last May, and there were all these old brainy types with a huge range of opinions of Elliott Wave. It helped though, and it was free (but they push their $2000 software on you during the seminar as well), and they give you some pretty good text to study, but when I was there, it was like a Twilight Zone episode. You know that epsiode where a guy sold his soul to the devil so that he could read people's minds? And when he went on a talk show to use it, he was forced to read 500 different minds, and than his brain exploded and he died. (LOL). That's what I felt like attending that seminar. The best way to use the Elliott Wave is to stay strictly to the rules and text, study charts to see first hand how the waves dance to and fro in a predictable pattern, and gain as much experience as you can. Multiple wave counts can be confusing, but you can usually tell whether a wave is extended or not. Wave 3's are usually the extended waves, and usually get extended due to over optimistic or over pessimistic news. It's also good to understand chart patterns like triangles, head and shoulders, rounding tops and bottoms etc to see how the Elliott Wave works. But the most important thing is to understand and adhere strictly to the rules, like how Wave 3's are never the shortest waves, Wave 2's never move beyond Wave 1's, truncated Wave 5's etc (you gotta get the book.) Fibonacci (.382, .500, .618) is very very important too, and is a vital element of Elliott Wave. The book gets into that in deep. But once you get the hang of it, waves and price movements become very predictable. I'm still studying it, and it may take years to completely master, but if I do, or if anyone does, it's the holy grail of all Techincal Analysis. -Ted