December 20, 2017

The Elliott Wave Forecast

If you follow the stock market closely then you probably know of some of the biggest names of Elliott Wave analysts. When the fore cast of Elliott Wave proves correct, they are actively seeking out that high. When the market starts to go down, they’re begging for it to keep going. With Elliott Wave forecast heading north, these big-time analysts still have wave counts to back up their arguments. Regardless of the fact that from 2000 to 2003 and from 2007 to 2009 the market was considered a “bear market,” Elliott analysts are still seen as being wrong in practicing their theories.

If all wave principle analysts had their way, the market would be starting a 50-year bull market leaving every trader rich. There is a reason for the direction Elliott Wave forecast has headed. Let’s face it: it’s been proven that wave principle patterns are a lot cleaner when the market is in decline. Large declines tend to become a huge emotional affair making it appear that this forecast “predicted”recession, hence heading it in a descending spiral. Also, most businesses, both small and large, don’t want to meet theincredibly “condescending” expectations which are constantly being placed on them when the market is going well. Because of this, many investors and traders seem to look for a fast exit.

These highly emotional situations can sway Elliott Wave forecast significantly in several different directions. At this point, sharp trends can usually be seen and they almost always support clear wave principle patterns. Comparing just this decade’s two bull markets to the decade’s two bear markets confirms these patterns. Despite this forecast, advances show that it’s a lot more difficult for a price to go up than it is for it to go down. This may corrupt how useful this theory is forcing analysts to make one bearish call after another. If you allow the bears to demolish your impression of this theory you will be missing out on the most accurate forecasting method on the market, Elliott Wave forecast, as long as it is applied objectively.

To fully comprehend how to use the wave principle method and Elliott Wave forecast theory, it is important to research and learn the specific rules of the theory and how to objectively apply these rules to pricing charts. It is also exceptionally important to know the limitations of this theory. The forecast of Elliott Wave makes it more difficult to forecast up-trends than down-trends; however, you must understand that a true wave count can’t be solely determined objectively because of the vast amount of possibilities.

When you have a forecasting theory such as Elliott Wave forecast that can predict even the smallest price movements down to a mere second, it can be quite difficult for Elliott analysts to not “abuse” this power. Forecasting using this theory is an art that needs to be mastered. As long as you can identify specific time frames when the exact wave count is not known, your approach on how to handle the trading market can be adjusted accordingly. Pay attention to Elliott Wave forecast as well as current market trends. You will find yourself trading like an Elliott analyst in no time!