Professional Documents
Culture Documents
Steven W. Poser
Managing Director, Research
New York Stock Exchange
212-656-4512
sposer@nyse.com
Todays Objectives
Overview
Basic Tenets
3
1
B
4
A
C
Wave modes
10
Elliott created names for cycles of varying sizes and time. Frost
and Prechter revised the names and notations
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Supermillenium
Millenium
Submillenium
Grand Supercycle
Supercycle
Cycle
Primary
Intermediate
Minor
Minute
Minuette
Subminuette
Micro
Submicro
Miniscule
1
(1)
1
I
(I)
I
1
(1)
1
i
(i)
i
1
(1)
1
A
(A)
A
a
(a)
a
A
(A)
A
a
(a)
a
A
(A)
A
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Extensions
Truncations
13
Diagonals
Corrections - Categories
Corrections Labeling
Corrections Zig-Zags
Zig-zags are usually faster and correct more price territory than
flats.
Corrections Flats
Corrections Triangles
Terminology
Irregular Tops
23
Alternation
24
Depth of Correction
Symmetry
The best measurement tool for equality, for all but very
minor cycles (ie, above minor) is percentage, not price
points.
Note: The book talks about how you cannot use intraday
highs and lows in the Dow. This is no longer true, although
it was correct at the time the book was first published.
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Channels
27
Wave Characteristics
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Wave Characteristics
Wave-2
Correction of first leg of bull move
Fundamentals still mostly negative
Drop seen as resumption of bear trend
Bears tell bulls, I told you so!
But, volume weaker on drop
In futures, open interest falls
Most sentiment surveys still bearish
29
Behavioral Finance
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Wave-4 Characteristics
Trend is still up
34
Wave-5 Characteristics
BUT....
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Wave-5 Characteristics
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Wave-A Characteristics
Wave-B Characteristics
Wave-C Characteristics
Da Rules!
Da Rules! (cont)
Da Rules! (cont)
Da Rules! (cont)
Da Rules! (cont)
46
Fibonacci - Introduction
The ratio of number n in the series, to number n1, quickly approaches 1.618.
The inverse of this is 0.618 and is known by the
Greek letter phi ().
48
Fibonacci - Introduction
0.382 (Sn/Sn-2)
1.618
0.618
2.618 = 1.618*1.618
0.236 (Sn/Sn-3)
4.236 = 1.6183
0.764 (1-0.236) or 0.786 (0.5)
Using Fibonacci
Using Fibonacci
Charts to Discuss
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Charts to Discuss
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Charts to Discuss
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