10 Riding the Storm: Elliott Wave Market Analysis

Andrew Aldrich Rank: 71 Followers: 5 Votes: 1 Years Member: 16 Last Update: 17 February 2018, 13:53 Categories: Elliott Wave Analysis
Chart Patterns

The great mistake is to anticipate the outcome of the engagement; you ought not to be thinking of whether it ends in victory or in defeat. Let nature take its course and your tools will strike at the right moment.
Bruce Lee

In the end, and with every improvement in science, the result depends more and more on the character of the Leader and his power of resisting 'the sensuous impressions of the battlefield.
Carl von Clausewitz, (On War (Vom Kriege)

It would, therefore, be a great mistake to draw the conclusion that a blind dash must always gain the victory over skill and caution. An unskilful attack would lead to the destruction of our own and not of the enemy's force, and therefore is not what is here meant.
Carl von Clausewitz, (On War (Vom Kriege)

On the negative side, whenever we are forced into a disadvantageous position which fundamentally endangers the preservation of our forces, we should have the courage to retreat, so as to preserve our forces and hit the enemy when new opportunities arise. (Mao Tse Tung)
My thoughts: study a good book on guerrilla warfare and apply those tactics and principles to trading. In reality traders are financial guerrilla warriors making raids against superior forces and retreating to the safety of their mountain wilderness. Fight when the odds are in your favor and live to fight another day when they are no longer in your favor.

Disclaimer: this is all just my opinion and interpretation. The work here is not intended to be used to trade the markets. The charts displayed here are meant to be of possible use in learning and refining ones Elliott Wave skills.


1a SPX - 1 min OHLC Bars, 1024

1b S&P 500 Large Cap Index ($spx) 10-min

12/8/15 note

Red counts are alternate counts. Elliott wave does not always tell us exactly where we are but it does prepare us to change our opinion of what should be the preferred counts.

Blue counts are preferred up moves. Black counts are preferred down moves.

1c S&P 500 Large Cap Index ($spx) 60 min

1d S&P 500 Large Cap Index ($spx) Gann roadmap

1e $SPX - Weekly OHLC Bars, 900

2a INDU - 1 min OHLC Bars, 1024

2b Dow Jones Industrial Average ($indu) 15-min

2c INDU- 60 Minute OHLC Bars, Wide (700)

2d INDU - Daily OHLC Bars, daily

2e INDU- Weekly OHLC Bars, Wide (700)

11/6/04: The flag projects a move above 13K. This suggests the 5th wave from 7197 will be extended with a target rise to 13264.

6/6/2004: According to Zoran Grayer a .707 fibo is a common relationship for Dow reversals and bifurcation points. He also mentions the 3rd high or low in a sequence will often be the point where market direction reveals itself.

1/17/2004: Note that 7197 or 7416 could be the a-wave of a much larger correction. If flat or triangle is playing out the current rally may be part of the b-wave and top off somewhere above 11000. Should an expanded flat or running triangle play out the b-wave could go as high as 13000. Also note the lack of any real correction since 7416. Moves that just keep going without any significant correction usually end up being single, double or triple zigzags. So we could just keep going into the 11K to 13K zone without ever seeing that long awaited correction.

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