Neowave. Innovations that Make Elliot Wave Work Better for You – Glenn Neely

Neowave. Innovations that Make Elliot Wave Work Better for You by Glenn Neely Description

The three core elements of Elliott Wave are:

• The Fibonacci number series
• Pattern recognition
• The Golden ratio (.618)

All three aspects contain a “forecasting” or “anticipatory” component in which the analyst expects the market to move up or down a particular number of “waves” that follow a predictable pattern and have specified correlations. (It should be noted that the idea of “waves” was not objectively defined in any book until the publication of Mastering Elliott Wave in 1990.)

NeoWave’s three core elements are logic (e.g., a strong correction must result in a powerful move), self-defining price/time limits (e.g., a smaller degree pattern cannot take more time and price than a larger degree pattern), and self-confirmation (i.e., the market’s post-pattern behavior determines whether your prior structural analysis was correct).