As everyone knows by now, we at Elliottwave-Forecast, are always betting in the future. When you do forecasting for a living, it become a habit looking ahead everyday instead of looking behind. During the history of mankind, many theories and projects have been developed and created, but if we held onto the initial versions, we neither would have enjoyed the developments we have today, nor our society would be so up to the time, and our living conditions much worse. Elliottwave-Forecast has been in business for over a decade and like every Elliott wave participant, we started believing and practising the Theory as it was develop by Ralph Nelson Elliott in the 1930’s and as he mentioned in the book, The Wave Principle. As we have always said he had a great mind and made a great discovery to be able to see the Patterns in the market. However, we also believe that the work was not complete and even when it was a tremendous discovery, there is no way, it can’t be improved almost 80 year later. As humans, we tend to avoid progress, a look at the history tell us that most major developments were done by individuals and not by the crowd and those Individuals have been called crazy and their work referred to as non-sense. We at Elliottwave-Forecast, believe in making progress for the good and because we produced over 54000 charts a year using The Elliott wave Theory, we understand what aspects of the original theory as mentioned in the book are not enough and need improving / adjusting.
Having said that, we need to open our mind and understand some concepts. Firstly, “Ego” which, by definition, means a person’s sense of self-esteem or self-importance, also the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity. Ego, is one of the reasons many humans do not allow something new to come in and consider discovering something new as if it were something wrong. Secondly, “Development” which can be referred to as the process of developing or being developed like evolution, growth, maturation, expansion, enlargement, spread, progress; success etc, we can see that it’s nothing more than the humans constantly looking for answers. Thirdly, it’s “Reality” that we need to understand, it is a very strong human weakness, and sometimes hard to understand. By definition, it’s the world or the state of things as they actually exist, as opposed to an idealistic or notional idea of them., Relating these three words or concepts can provide clues about subjectivity of Elliott Wave Theory, as written in the books which follow the original work of Mr Elliott, and why it doesn’t work the way it should.
After this explanation, let’s talk about the Theory and how it stands with the major rules and ideas. The first idea is that the markets exhibit certain repeated patterns. Mr Elliott’s primary research was with stock market data for the Dow Jones Industrial Average. This research identified patterns or waves that recurred in the markets. Very simply, in the direction of the trend, expect five waves. Any corrections against the trend are in three waves. Three wave corrections are lettered as “a, b, c.” These patterns can be seen in long-term as well as in shortterm charts. This is something, which we do not agree, with because we have seen many markets which trend in 3 waves even in the longer term and correct also in 3 waves with one thing for certain that a correction can never be in 5 waves which the Theory suggests as well. Therefore, we believe the Theory needs an adjustment there. Below is a Weekly chart of EURUSD and since the peak at 2008, we can see a drop of almost 5600 pips but the entire decline is in series of 3 waves and not a single 5 wave cycle is there in the weekly time frame. As shown in the chart, the Instrument drops a lot during 7 years and provided a bearish trend, if were following the Elliott Wave Theory as in the books, we would have been forcing 5 waves on the decline when everything was in 3 waves, then reality hits after the Market starts rallying after the corrective sequences completed or reached the target. Therefore, we reiterate that the idea that the Market trends in 5 waves and corrects in 3 waves doesn’t apply to all markets and hence it’s not accurate and has not been accurately described in the book. Mr Elliott developed the Theory basing most of his work in the Dow Jones which is an Index and it’s usually the Indices which mostly trend in 5 waves due to the human development factor. Forex and most other markets trend and correct in 3 wave sequences.
FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.