24/03/2010 – The Stock Market Is Patterned — Here’s Proof

You see that each “wave” within the overall
structure subdivides in a specific way. If the wave is
heading in the same direction as the wave of one larger
degree, then it subdivides into five waves. If the wave
is heading in the opposite direction as the wave of one
larger degree, then it subdivides into three waves (or
a variation).

Understanding how the market progresses at all
degrees of trend gives you an invaluable perspective. No
longer do you have to sift through the latest economic
data as if they were tea leaves. You gain a condensed view
of the whole panorama of essential trends in human social
mood and activity, as far back as the data can take you.

OK, now you try it. Figure 3-7 shows an actual price record.
Does this record depict two, three, four or five completed
waves? Based on your answer, what would you call for next?

Let’s compare your answer with mine. From the simple
idea that a bull market comprises five waves, The Elliott
Wave Theorist in September 1982 called for the Dow
to quintuple to nearly 4000 and on October 6 announced, “Super
bull market underway!” The November 8 issue
then graphed the forecast for the expected fifth wave up,
as you can see in Figure 3-8.

As you can see, Elliott waves are clear not only in retrospect.
They are often — particularly at turning points — quite
clear in prospect.

Visit Elliott Wave International to learn more about the
free “What
Can a Fractal Teach Me About the Stock Market?” report.