He had command.
He was a poet considered by some as an “incarnation of literary correctness in the English-speaking world.”
His name is T.S. Eliot. And he used his command of words to shape the emotions and feelings of readers.
Interestingly, a different Elliott did the opposite. He harnessed emotions and feelings to shape his command of markets.
The winter evening settles down
With smell of steaks in passageways.
The burnt-out ends of smoky days.
And now a gusty shower wraps
The grimy scraps
Of withered leaves about your feet
And newspapers from vacant lots;
The showers beat
On broken blinds and chimney-pots,
And at the corner of the street
A lonely cab-horse steams and stamps.
And then the lighting of the lamps.
-T.S. Eliot, an excerpt from Preludes
Ralph Nelson Elliott developed the Wave Principle and became what I’d call an ‘incarnation of technical analysis in the trading world.’
Think of Elliott Wave Principle as my daily poetry reading to help give you command of the market.
You see, technical analysis, especially Elliott Wave Principle, is grounded in the emotions of traders. It is essentially a collage of what traders are collectively feeling and doing at any given time. Fear and greed drive these emotions over and over again. And the repetition forms patterns in market price structure. It isn’t always crystal clear. It isn’t always perfect, but it has worked for me.
I use Elliott Wave to help identify trends and turning points. It adds to my edge. As a pure forecasting method, it works better than any other system or technical tool I’ve applied to markets over the past 28 years.
Wave principle helps me identify where I might want to take a trade. It is the guide that tells me...here!
Keep in mind, Elliott Wave Principle isn’t about making a monolithic “forecast” that is set in concrete. It is about identifying the highest probability of where the market may go based on repeatable patterns. It is a process of monitoring price action and being wide open to change.
I share this analysis so my subscribers can understand these rationales and hopefully profit along the way.
To wit, my chart updates like this are intended to empower you – to let you visualize the trades and gain an understanding of how my system identifies waves, trends, key levels, turning points and targets. But, these updates, especially in shorter time-frames, may change depending on price patterns being traced out by Mr. Market. So be wide open to change is important.
Defining levels and potential trend changes with Elliott Wave allows for better odds and increased risk control. If you speak to professional traders and ask what is most important in trading, they will tell you risk control. Professionals control risk first and worry about profits second--focus on process.
You’re on your way to success once you have a command of risk and can apply a system consistently.