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Neowave and Glenn Neely

  • #21
  • Edited 9:13am Jun 2, 2007 8:57am | Edited 9:13am
Well I have read the book a couple of times and find the concepts overly complex... I am not a Elliot theorist, so I stepped out of the discussion. I have no doubt Neely is a very brilliant person. I just found the concepts too esoteric for me to apply.
  • #22
  • Jun 2, 2007 11:20am Jun 2, 2007 11:20am
Quoting smjones
Well I have read the book a couple of times and find the concepts overly complex... I am not a Elliot theorist, so I stepped out of the discussion. I have no doubt Neely is a very brilliant person. I just found the concepts too esoteric for me to apply.
Say Scott,

Do you have or know any mt4 indicator that create the neowave chart?

I only know how to do it in ms excel.
  • #23
  • Jun 8, 2007 5:35am Jun 8, 2007 5:35am
Quoting smjones
Well I have read the book a couple of times and find the concepts overly complex... I am not a Elliot theorist, so I stepped out of the discussion. I have no doubt Neely is a very brilliant person. I just found the concepts too esoteric for me to apply.
Thanks for the reply.

I'm going to continue to plod through the book, and I agree it's very complex, so complex I'm not even sure how to plot the charts properly!!! I'm not too sure why people keep mentioning the need to use Excel. The way I've read the plotting section, it seems viable to use a 4h chart and simply plot the high and low of the day, in the order they appeared. This would give you two data points for a daily chart.

The next part for me seems to be the most tricky. To get the rule of proportion in MT4, could I simply adjust the scale of the chart until the data fits inside a perfect square. But then, is there a way of drawing a perfect square within MT4. On graphics programs I'm used to holding down the shift key to draw a square, but it doesn't work with MT4.

Thanks.
  • #24
  • Jun 8, 2007 7:21am Jun 8, 2007 7:21am
Quoting Sanook
Thanks for the reply.

I'm going to continue to plod through the book, and I agree it's very complex, so complex I'm not even sure how to plot the charts properly!!! I'm not too sure why people keep mentioning the need to use Excel. The way I've read the plotting section, it seems viable to use a 4h chart and simply plot the high and low of the day, in the order they appeared. This would give you two data points for a daily chart.

The next part for me seems to be the most tricky. To get the rule of proportion in MT4, could I simply adjust the scale of the chart until the data fits inside a perfect square. But then, is there a way of drawing a perfect square within MT4. On graphics programs I'm used to holding down the shift key to draw a square, but it doesn't work with MT4.

Thanks.
Could you elaborate more on the plotting using 4h chart?
A screenshot would be nice.
  • #25
  • Jun 8, 2007 7:25am Jun 8, 2007 7:25am
Guys,

I read the book 5 times and spent two years studying Neely's Neowave. It's a waste of time. Just pay attention to the different :5 and :3 patterns he depicts near the middle/end of book. Forget chapter 2. After you read the book and try and apply it you will realize how futile it is to count each and every wave. Better to get Mike Jenkins' book, "Chart reading for professional traders". A Gem. Masterpiece. There is ONE page in the book that has 10 patterns which summarizes all the available patterns out there. That is all you need.

Al
  • #26
  • Jun 8, 2007 10:08am Jun 8, 2007 10:08am
Quoting Balflear
Could you elaborate more on the plotting using 4h chart?
A screenshot would be nice.
Sure. On page 2-10 he says, "If you want a little more daily detail......or you can use the high and the low for the entire day and plot them in the order they occurred (this last approach is the best)".

The grey vertical lines are day separators. I've also removed some points to clean up the chart.

Thanks.
Attached Image
  • #27
  • Jun 8, 2007 9:33pm Jun 8, 2007 9:33pm
Quoting wwwin
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?
Actually, no, it wouldn't tell you that. It could easily be coincidence that you were right, especially when you are considering one isolated move. If you used the method for several years and had a statistically significant number of predictions to analyze, you could determine with some degree of certainty whether or not your method worked.

I would recommend that you pick up a book about statistical analysis. Try to find something by Thorpe. The Mathematics of Gambling is a good one. I'm not saying this to be mean or insulting. It's not a natural way to think, so if you haven't studied it you won't know how to do it. I actually think this stuff and rigorous logic training would benefit people more than anything else when it comes to trading.
  • #28
  • Jun 9, 2007 10:06am Jun 9, 2007 10:06am
Quoting Sanook
Sure. On page 2-10 he says, "If you want a little more daily detail......or you can use the high and the low for the entire day and plot them in the order they occurred (this last approach is the best)".

The grey vertical lines are day separators. I've also removed some points to clean up the chart.

Thanks.
Thanks for your reply.

The method you used on h4 for a daily neowave chart looks ok, but there is no equal distant between time slot and the price since sometime you plotted the high and low in the same time slot. (refer figure 2-6 and 2-7)

Some comparison I made on GBPUSD daily chart.

Your method:
http://img368.imageshack.us/img368/5...wavegu1in4.gif

Excel:
http://img368.imageshack.us/img368/6...owavegutv4.jpg

I dont know if this affect the analysis or not, but i prefer on the excel chart. Heck, i read on other forum that by using a bar chart is also can be good.

Here some qoute from Neely on his site:
Quote
Question: In creating a wave chart, how do you decide to plot the high or low first? Answer: To produce good wave counts, wave charts are essential. A wave chart is created by plotting two price points per period (i.e., Daily, Weekly, Hourly, 5-minute, etc.) in the order they occurred during the period. Unfortunately, I have never known of a data service that produces proper wave charts, so the process must be done manually.

To determine whether the high or low came first, create a chart composed of bars 1/40th the size of the time frame you plan to plot. For a Daily plot of the cash S&P, which is open 6.5 hours each day, 1/40th of that time is approximately 10 minutes (if your market trades 24-hours a day, 1/40th of the day is approximately 30 minutes). A chart 1/40th the size of the larger time frame will make it easy to determine whether the high or the low came first on the larger time frame. Which ever came first, place that in an Excel spreadsheet (say column 1-B) and place whatever came second in column 2-B. Place the dates in column A with the same date twice before going on to the new date. Continue this vertical, sequencial placement of data until you have enough to plot a chart. A good wave chart will contain 40 or more data points. http://www.neowave.com/images/spacer.gif http://www.neowave.com/images/spacer.gif
  • #29
  • Feb 13, 2008 9:40am Feb 13, 2008 9:40am
Neely's book is truly fascinating. I'm a firm believer in the idea that a proper understanding of Wave Theory is the so called "near-perfect" indicator.

I'm reading the book at the moment, and thus far I can't say that any book I've completed has posed many real challenges in terms of the comprehending the material. In a sense, they've been like your typical Algebra, Geometry or First-Year College Calculus courses - read through them, do some practise, and you can apply the principles (the more you follow through on the latter, the less error-prone your application becomes). Mastering Elliot Wave I liken to Third-Year Topology - if you want to go straight into it, and obtain a sufficient level of understanding, it's going to be a long road without the adequate preparation you receive in first and second years.

Anywayyyy (sorry for my math analogy...)....

Does anyone who has read through the book have a computerised method for creating charts to be analysed. I find the process of putting my data in Excel manually very tedious. I'm also finding that the application of the Rule of Proportionality makes the task just down-right annoying.

Any ideas?
  • #30
  • Feb 13, 2008 9:53am Feb 13, 2008 9:53am
Quoting BDtrading
Neely's book is truly fascinating. I'm a firm believer in the idea that a proper understanding of Wave Theory is the so called "near-perfect" indicator.

I'm reading the book at the moment, and thus far I can't say that any book I've completed has posed many real challenges in terms of the comprehending the material. In a sense, they've been like your typical Algebra, Geometry or First-Year College Calculus courses - read through them, do some practise, and you can apply the principles (the more you follow through on the latter, the less error-prone your application becomes). Mastering Elliot Wave I liken to Third-Year Topology - if you want to go straight into it, and obtain a sufficient level of understanding, it's going to be a long road without the adequate preparation you receive in first and second years.

Anywayyyy (sorry for my math analogy...)....

Does anyone who has read through the book have a computerised method for creating charts to be analysed. I find the process of putting my data in Excel manually very tedious. I'm also finding that the application of the Rule of Proportionality makes the task just down-right annoying.

Any ideas?
You could use the attached indicator, but i found some minor bug, possibly related to bad coding and broker timezone. (By using different broker that has diffrent timezone, the indicator plot differently.) When comparing the indicator with my own plotted excel data, the broker that start at GMT+0 almost look the same except that the indi doesn't plot the sunday candle.

I am a programmer, but haven't had the time to learn mql language yet or else i might reprogram the indi

Right now, my Neowave is on hold, Im focusing on my own simple system. After im done, might go back to learn neowave. (It does work sometime, i even can predict tomorrow high low by using the monowave)

The indi i get it from here:
http://codebase.mql4.com/en/1294
Attached File(s)
File Type: mq4 FX5_NeelyElliotWave_v1.2.mq4   19 KB | 1,851 downloads
  • #31
  • Feb 13, 2008 10:00am Feb 13, 2008 10:00am
Oh wow, thanks a lot for that (and for the rapid response!).

Have you read the book, and if so what are your thoughts on the text, as well as the so-called objective methods it details?
  • #32
  • Feb 13, 2008 10:09am Feb 13, 2008 10:09am
Quoting BDtrading
Oh wow, thanks a lot for that (and for the rapid response!).

Have you read the book, and if so what are your thoughts on the text, as well as the so-called objective methods it details?
I haven't fully finish reading the book, still stuck at chapter 4 because of the intensive rules for finding the monowave. So no comment on that. If only I have a proper neowave chart, that will accelerate my learning . I even printed the excel neowave chart and do it manually until I stumble upon an Ah-ha moment and created my own system. So the neowave chart was left untouched for a long time.
  • #33
  • Feb 13, 2008 10:12am Feb 13, 2008 10:12am
Quoting Balflear
I haven't fully finish reading the book, still stuck at chapter 4 because of the intensive rules for finding the monowave. So no comment on that. If only I have a proper neowave chart, that will accelerate my learning . I even printed the excel neowave chart and do it manually until I stumble upon an Ah-ha moment and created my own system. So the neowave chart was left untouched for a long time.
Care to share this 'Ah-ha' moment?? lol

So you don't find that the MT4 indicator works properly? How do you apply RoP to it?
  • #34
  • Feb 13, 2008 10:13am Feb 13, 2008 10:13am
I get a headache every time I open that book. It's seems Neely is the only one who can master it. Lots of great info and is worth studying but not worth mastering unless your a math professor with alot of time on their hands.
Just Trade It
  • #35
  • Feb 13, 2008 10:20am Feb 13, 2008 10:20am
Quoting Big Wave Rider
I get a headache every time I open that book. It's seems Neely is the only one who can master it. Lots of great info and is worth studying but not worth mastering unless your a math professor with alot of time on their hands.
I agree, it is indeed a challenging read, but I do find it interesting - I'm no math professor but I am doing mathematics/finance at university and have a passion for the subject.

Do you recommend any other books for Wave Theory?
  • #36
  • Feb 13, 2008 10:21am Feb 13, 2008 10:21am
Quoting BDtrading
Care to share this 'Ah-ha' moment?? lol

So you don't find that the MT4 indicator works properly? How do you apply RoP to it?
Sorry cant share that with you.

The indicator does work, but sometime you have to check it with your own excel neowave chart. 1 thing to note that, if you used the indicator on timeframe h1 and h4, h4 will have extra monowave which i dont know where it come from. Thats why you have to check it the the excel chart.

RoP based on my understanding and observation, its just for you to have the proper scale for you to use the RoN. Since if you change the time scale, the degree for RoN (the 45 degree) will change as well. Hope you understand what im saying, since im suck at explaining and english is not my first language. You can used the indicator, and playing with the zoom and timescale to do the RoP.
  • #37
  • Feb 13, 2008 10:24am Feb 13, 2008 10:24am
Quoting BDtrading
I agree, it is indeed a challenging read, but I do find it interesting - I'm no math professor but I am doing mathematics/finance at university and have a passion for the subject.

Do you recommend any other books for Wave Theory?
Might as well just learn Nelly River Theory. He says that the river theory are much better and profitable than his neowave.

As for EW books, just go to Amazon.com and search for Elliot Wave, theres a lot of EW books you could choose and even read some user reviews/comments.
  • #38
  • Feb 13, 2008 10:25am Feb 13, 2008 10:25am
Quoting Balflear
Sorry cant share that with you.

The indicator does work, but sometime you have to check it with your own excel neowave chart. 1 thing to note that, if you used the indicator on timeframe h1 and h4, h4 will have extra monowave which i dont know where it come from. Thats why you have to check it the the excel chart.

RoP based on my understanding and observation, its just for you to have the proper scale for you to use the RoN. Since if you change the time scale, the degree for RoN (the 45 degree) will change as well. Hope you understand what im saying, since im suck at explaining and english is not my first language. You can used the indicator, and playing with the zoom and timescale to do the RoP.
Your english is perfectly fine Yep, I understand what you're saying.

Have you read any other books on Wave Theory that you might recommend?
  • #39
  • Feb 13, 2008 10:28am Feb 13, 2008 10:28am
Here is web page www.neowave.com, I think I would need at least a month of one on one with Neely himself (which is possible) before I can grasp all the rules.
Just Trade It
  • #40
  • Feb 13, 2008 10:32am Feb 13, 2008 10:32am
Quoting Balflear
Might as well just learn Nelly River Theory. He says that the river theory are much better and profitable than his neowave.

As for EW books, just go to Amazon.com and search for Elliot Wave, theres a lot of EW books you could choose and even read some user reviews/comments.
I can't find any instructional material on Neely River Theory....
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