You notice on the internet, way too many “elliotticians” who “think too hard” and “label too hard”. This is a brain going to the extreme logical side. If you heard of Glen Neely he creates charts with fancy characters, x y and z, and garbage that strays way from R.N. El- liott’s approach. Typically they dress up these charts to look complicated to make themselves “look good”..in reality it’s just a pile of horse manure…also…$2000 software makes complications 100 X worse.
Neely, butchers it…Many disciples spend chart labeling them incorrectly.
“The best” software will spit out as many as 8 different counts, which will confuse you, and even make you want to quit. How do I know this? I was a victim of this software, AND those XYZ people in 2001. I went to an Esignal seminar back in early 2001 (as mentioned in an earlier chap- ter) when I was learning the elliott wave…the software labeled the April 2001 drop a “W2″… this one error created by a machine caused one mistakes …EVER.
Note: Elliott wave is you get to XYZ and lost your soul to logic. wave….software and the eyes to visualize it, and
people split the numbers into smallerfractals, and even using fibonacci that’s not even close to golden ratio. What I’m stressing about fibonacci is this, when it’s com- bined with elliott wave. Stick with the golden ratio. Don’t divide it up. From my vast experience, 50% is non-existent. Don’t even bother looking for them. .236, almost never happens. .786 went from a working ratio to almost obsolete number. Those numbers are “the impatient fibonacci numbers”. Traders that “want to trade” so they’re “wiling to accept these numbers.” Don’t even bother. What you look for is purity. The golden ratio.
All that works form are these numbers. 1.00, .618, .382, 1.618, 2.618. .786
When I’ve followed the pure fibonacci fractals, I can find the most de- finitive moves in each wave.That’s it. You thought it was more than that didn’t you? When you see the purity, things start to open up…big time… Like clear spirals from the sky. You see it. That’s the wave count. Once you see it, you see the patterns….or in my case “THE” pattern.
Update 2013: These numbers are important, but the biggie these days had now become the good old .786 upside break. I key off this .786 level after completed ABC zigzags to setup 80% trade setups on my website. To the downside I only rely on .618 support but not .786, so keep that in mind…
Here’s what everybody wants to know. How do I predict bottoms at the exact day?
Or how “did I”… I was messing around with my favorite charting soft- ware. Bigcharts. It’s the only website based charting software I’ve ever needed and it’s free. I decided to analyze all the major bottoms since the 70’s. Including 1974. And I started noticing something. The spirals were very distinct. When I “candle-ized” them, my eyes widened. Fibonacci was everywhere! I started counted from major bottoms to tops. I noticed that each bottom to top was between 55 or 89 fibonacci days, and if you blew it up, 55 or 89 fibonacci months!
It only look one time for me to see this. I spent the entire night look- ing at all the instances of this from the bottom of 74 to
present. It happened repeatedly. It was so mind blowing to me..I started to also notice fibonacci #34 appeared during short corrections. Those were the 3 numbers that worked. 34, 55, 89. 13 and 21 was very “lazy”, and 144 could be split up into 55 and 89. Since this discovery, I noticed a more frequent occurrence of 55 and 89. 55 has been happening very
frequently in the past 5-6 years.
Wanna see something really cool? This is crazy.
In 1933 the truncated 5th wave low was 50.16.
In 1973 the high was 1051.7…so what, right?
Divide 1051.7 by 50.16, you get 20.97..don’t forget that number.. 1974 low low was 577.60..multiply that by 20.97
What do you get? 12,110.48
2000 high was 11,723…now think.
The lowest of the low in 1933 shot up 20.97 X to 1051.7 in 1973
The lowest of the low in 1974 was 577.60..multiplied by 20.97 you get 12,110.48…
See the parallel? I’m sure you do, and I’m sure you’re shocked.
Now if the low of the DOW was 6480 approximately, multiply that by 20.97 you get 135,885.6
Will life parallel and will we see 135,886 in 3 decades or so?
What or who would cause this sudden change in human awareness like the 60’s?
Note: each number started close to 5 or 6, and the multiple is almost 21, a fibonacci number.
Bizarro huh? That’s the world I live in.. Along with 1111, 777 and 666…don’t ask lol