Okay. There can be only two reasons why you are reading this article right now:
- You thought “Elliott wave” was a surfing term for a wicked breaker, dude.
— OR —
- You’re tired of fundamental analysis of financial markets leaving you behind the trend-moving curve, AND you’re ready for an alternative.
If you answered the second choice, then you’re in the right place. Fact is, you can probably count on all hands — of a millipede — the number of times the mainstream financial media has provided conflicting reports on how a certain news event “moves” a particular market. Case in point, the recent headlines below on the Dow Jones Industrial Average:
- March 31 at 8:44 AM: “US Stocks Edge Lower After Jobless Claims Data” (International Business Times)
- March 31 at 9:53 AM: “US Stocks Slightly Higher After Jobless Claims Data” (Wall Street Journal)
The Elliott Wave Principle resets the stage from an entirely different starting point. Wave analysis asserts that while certain news events can have a temporary, near-term effect on market prices, the larger trend is governed by one consistent force: social mood, or collective investor psychology.
This source of markets’ trending power unfolds in calculable wave patterns visible on a market’s price chart. Elliotticians know of 13 such patterns, each of which adheres to specific rules and guidelines. Ultimately, if you can identify one of these patterns, you can project what direction the pattern will move prices AND how far into that direction prices may go.
The best part is, Club EWI has recently re-released our most comprehensive Wave Principle tutorial ever, at no monetary cost. This 10-lesson courseleaves no stone unturned and no question unanswered about the basic recognition of all Elliott patterns and their practical application in real-world markets.
In the end, the difference comes down to this simple reality: Before taking the Wave Principle tutorial, the price chart of a major financial market looked like this:
After taking the tutorial, that same chart comes into breathtaking being as the clearly labeled blue print to opportunity we see below:
Join the rapidly expanding Club EWI community today and get the complete, free Wave Principle Tutorial.
This article was syndicated by Elliott Wave International and was originally published under the headline Everything You Ever Wanted to Know About the Elliott Wave Principle, Free. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.