Neowave and Glenn Neely
I recently acquired his book on mastering elliot waves.
only on the 3rd chapter, but i see he has taken a lot of subjectivity out of EW theory.
has anyone had experience using his techniques on Forex? One thing that is great about his book is that he addresses special considerations to be used on global markets such as forex.
hi im on chapter 3.
im in the process of making an indicator that plots data according to what he said about Forex.
Have read the book
actually i am not using average price. i am taking the high and low for that day, plotting in the order it came first. according to him, this iwas the better option
Well, after three hours of serious concentration, I got through the first thirty pages of Chapter Three. I can see where this is going as far how to properly define where you are at in a wave structure, but getting these rules to properly define a monowave is meticulous. I am going to have to read these thirty pages over again tomorrow just to make sure I am clear about it.
Back to the discussion on Chapter Two and collecting and plotting data. I am having to export from a chart package and import into excel to manipulate the data and create charts. How are you guys doing this exactly?
jeff, i wouldnt worry about memorizing it
when it comes time to analyze, simply look at the book while you are working. after a while, you'll remember most of it
i have an indicator that is helping out a lot
btw, check your PM
ok this is my first neely question and its a pretty fundamental question:
After gathering your data points, do you plot them on a chart and then mess around with the scale on the whole chart so that every piece of directional and non directional action on every level satisfies the Rule of Proportion simultaneously using that same scale? If so, it could be very difficult to make all pieces of price action fit. it would also cause you to possibly update your chart with every new data point. somehow i dont think this is what you are supposed to do
If not or you don't know what Im talking about could you go through the process of applying Rule of Proportion and Rule of Neutrality. Dont need to go into the rule itself, but more of what waves to apply it to
I looked at this a while back and came to three conclusions:
It is sufficently complex that you can make consistent mistakes and never know it.
You can never figure out if you are doing it wrong or if the system itself is flawed.
It makes my head hurt.
Incompetence is a double-edged banana.
Yes, Glenn's work is very comlex to say the least. However, much of his approach, especially the material in chapter three can be programed into a good charting package like Tradestation, MT4 or Amibroker.
The use of the Rule of proportion and the rule of neutrality and the use of the monowave structure, and the use of m1,m0,m2 is a very objective approach.
Subjectivity in Elliot wave has always been a problem for me to get my head around. Neely has applied a scientific approach and has removed much of the subjectivity.
Just like anything else that is complex, such as mathematics, where you go from Algebra to Geometry to Trigonometry to Calculas, to advanced appilaction, this requires one to build their knowledge base slowly and completely before advancing to the next level.
I have been very impressed with the approach so far. It is daunting, but it seems to be worth the effort. This is coming from a person who does not have a lot of faith in Elliot Wave...
I will come back and report again in a year after I understand it completely...
Clam, Is it an optical illusion? or are none of your boxes squares? It looks like the are elongated. Anyway, I think he said to draw a 90degree vetical and a 0 degree horizantal and then use that to see if you can apply the RoN.
I am not sure of the question you are asking, but it looks to me like you are trying to decide on applying RoN on more than one Monwave at a time.. This would not be correct. So I would say, look at the first box and decide if the RoN applies and then move on to the next larger set.
If this is not what you are asking, maybe you could rephrase your question..
I bought the pound on 11/24/06 at 1.9320 mostly based on EW and some technical analysis, but mostly my believe that W3 had just started. Althought I am just learning Neely, I had read EW Principle before. EW is not a entry/exit system, it is a forecasting tool. It does not tell you to enter or exit at specific prices, it gives you probabilities and direction of market. I would say 500 pips in a week is worth a little headache. If you don't believe me, go to this posted on 11/24/06
Even though I hardly know the Neely method, I just went to appropriate parts of book and that helped me or at least gave me confidence to place the trade. You don't have to get lost in every minute detail of the book to make it useful. It would take many months to learn all this.
"You can never figure out if you are doing it wrong or if the system itself is flawed." If you forecast a big move up, and it happens, would that not tell you that you are doing it right? Or at least that you got it right that time? It is not a system, it is a forecasting tool. If you want a system that would tell you at what price to enter/exit, in other words, no work on your part involved, this is not for you. But I dare you to tell me which system can do that and not be flawed. It is not possible, by definition such system is doomed to fail. It is the subjectivity of EW that makes it long lasting, it allows for changes as changes take place. MECHANICAL SYSTEMS ONLY WORK WHILE THE SAME DYNAMICS EXIST AS AT THE TIME THE SYSTEM WAS DESIGNED. ONCE THAT CHANCES, THE SYSTEM DOES NOT WORK, AND IT MAKES YOU LOSE MONEY INSTEAD.
very true scott.
chapter 3 is complicated, but the thing is that yo dont need to memorize the rules, you can take your time unless your trying to analyze 15 minute charts!. if you are charting daily or weekly, simply use the book as a guide while anlalyzing every day or week
hi scott, thanks for trying to answer it.
yes my boxes could not be squares...i just drew them quickly to illustrate my point.
what im actually asking is WHERE do you apply teh rule of proportion?
do you apply it to the whole chart or to individual pieces of directional and nondirectional price action seperately.
take a look at the pic. hope it clears things up
Hmm, Tough question, I am going to have to go read the first part of chapter three again. get back in a few..
I've just discovered this type of Elliott Wave analysis, and was wondering what the original posters in this old thread, came to with regards to conclusions about the method etc?
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