Novice Traders' Notebook  |  JUN 2002

Working Money: Counting Elliott Waves, Part 1 by Rudy Teseo

Counting Elliott Waves, Part 1 by Rudy Teseo In this four-part tutorial you’ll learn about the theory and applications of the Elliott wave. In part I, you’ll learn about projections. This tutorial, while by no means a definitive text on Elliott wave (EW) theory, is instead meant to be an overview of the basic elements that can serve as a foundation for further study. Altogether, the four parts will serve as a helpful reference as you do your own analysis. Throughout the tutorial, most wave patterns will be shown in rising (bull) markets, since similar principles can be applied to falling (bear) markets. Wave labels that would normally be circled will instead be enclosed in brackets in text. WHY USE ELLIOTT WAVES? The goal of any system is to identify market lows and buying opportunities (or short covering) and market highs and selling opportunities (or short selling). Elliott wave analysis can help you accomplish these goals, and will keep you in the market and going in the right direction.

by Rudy Teseo