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Reproducing here mentors reply to someone from the list:
Extract "
Re: Reason I prefer analysing the DJIA
As you know I do only Wave Analysis. To be honest, I do not know any
other form of technical analysis. When I am in the company of other
analyst friends and when I hear words liks MACDs, stochastics,
Bollinger Bands, etc. I feel that I belong to a species known as
the "ignorant ignoramus". As most of these analysts have complete
disdain for the Wave Principle, my mouth remains firmly shut and the
expression on my face is that of a moron.
Getting back to the point, Wave Analysis requires a certain amount of
historical data. The DJIA (though the stocks that comprise it have
changed over the years as also their weightages) is probably the only
Index in the world for which data is available for more than the last
200 years. Besides Elliot worked on the DJIA in the 1930s. Later
many renowned Ellioticians like Hamilton Bolton, A.J. Frost, Robert
Prechter and Glenn Neely have done pioneering work in fitting the
Wave Principle to the DJIA. For beginners and laymen like us, it is
essential to take the readings of these gentlemen into account, to
know more or less "where we stand - Ellitowise" in the wave count of
the DJIA.
In my opinion, on the Grand Supercycle scale, we are in the IIIrd
wave which started in the year 1932. On the Supercycle scale (which
is of one lesser degree), I think we are in the 2nd wave. I am not
at all confident about my readings on these large patterns. The
manner in which the market action is channeling almost perfectly
between 2 parallel lines, with the odd breaks, leads me to believe
that this 2nd wave of Supercycle degree is possibly a running double-
three or even possibly a running triple-three. Alternatively, it
could be a very irregular corrective b-wave of the 2nd wave of
Supercycle degree. In any case, whenever this 2nd wave terminates
(which has to be with a sharp fall), the most explosive 3rd upward
wave will commence. I am not sure whether this will take place in
our lifetime but it will be a period of unprecedented prosperity in
the USA as also the total economic dominance of that country over the
rest of the world.
I think I would be unable to come to such a conclusion using any of
the several other indices that exist."
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